Mason & Starr

Weekdays 6:00 a.m. - 10:00 a.m.

Kellogg, the maker of Frosted Flakes, Corn Flakes, Rice Krispies, Eggo, and more of your favorite delicious snacks and cereals, plan on splitting into three companies based on cereals, snacks, and plant-based foods. The company, which also owns plant-based food company MorningStar Farms, said Tuesday that the spinoff of yet-to-be-named cereal and plant-based food companies should be complete by the end of next year. Kellogg CEO Steve Cahillane, released a statement saying, “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.” In his new role, Cahillane will serve as chairman and CEO of the snacking company. The management team of the cereal company will be announced at a later date.

In 2021, Kellogg’s net sales were $14.2 billion, with $11.4 billion coming from its snack division, which produces Cheez-Its, Pringles, Pop-Tarts, and other brands. Last year, cereal sales accounted for another $2.4 billion, while plant-based sales amounted to $340 million. Kellogg said it would investigate other options for its plant-based business, including a possible sale. Following several years of strong growth, plant-based meat sales in the United States have been very stable in recent months.

The cereal and plant-based meat businesses will remain in Battle Creek, Michigan, where the company was first founded in 1906. Kellogg’s snack business, which currently accounts for 80% of the company’s sales, will have offices in both Battle Creek and Chicago, with its headquarters being in Chicago. All three of Kellogg’s international HQs will remain in their current locations which are in Europe, Latin America, and the Americas.