Kellogg Company’s board of directors formally approved the separation of the Kellogg Company into two independent, publicly traded companies, Kellanova and WK Kellogg Co.
"After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners," stated Steve Cahillane, Kellogg Company's chairman and chief executive officer.
Kellanova will consist of the global snacking, international cereal and noodles, plant-based foods and North American frozen breakfast brands. This includes brands such as Pringles, Cheez-It, Pop-Tarts, Incogmeato, Nutri-Grain and Eggo. Kellanova will also own international cereal brands including Kellogg’s, Frosties, Zucaritas, Special K and Krave.
"We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy and an energized organization grounded by a winning culture and our founder's values," said Mr. Cahillane, who will remain chairman and chief executive officer of Kellanova. "These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio."
The North American cereal brands including Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran and Rice Krispies will be under WK Kellogg.
"WK Kellogg Co has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future," remarked Gary Pilnick, who will serve as WK Kellogg Co's chairman and chief executive officer following the separation.
On the shelves, consumers can expect to still see Kellogg’s brand packaging on products. Both companies will keep the Kellogg’s “K” despite having different logos.
Last month, payments technology company NCR also made a similar move when it divided into two entities. Read more about the separation in NACS Daily.