US Kellogg Announces Split into 3 Companies... Stock Price Rises Nearly 2%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Kellogg, the American food company famous for Pringles and cereals, announced on the 21st (local time) that it will split into three companies.

According to the Wall Street Journal (WSJ) and others, Kellogg will be divided into snack business, North American cereal business, and plant-based food business. This is a strategy to strengthen each sector through more agile and focused operations.

Kellogg stated that it will expand the cereal business, whose market share has shrunk, while strengthening the rapidly growing snack sector. Steven Cahillane, Kellogg's CEO, will lead the $11.4 billion snack business, which accounted for 80% of Kellogg's sales last year.

WSJ reported that Kellogg will complete the split by the end of 2023, starting with the North American cereal business and then spinning off the plant-based food division. On the same day, Kellogg also confirmed that it is considering the sale of the plant-based food division.

Following this news, Kellogg's stock price closed up 1.95% compared to the previous session on the New York Stock Exchange that day.