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Kellogg embarks on new future, finalizing split into two businesses

https://www.fooddive.com/news/kellogg-embarks-on-new-future-finalizing-split-into-two-businesses/695335/

Sixteen months after the separation was announced, the snacking and North American cereal businesses — Kellanova and WK Kellogg Co — are trading separately on the New York Stock Exchange.

Today, Kellogg’s cereal business began trading on the New York Stock Exchange as WK Kellogg Co. The company’s broad snacks division is now trading under the name Kellanova. The split was first announced sixteen months ago.

WK Kellogg Co, began trading under the ticker symbol “KLG” while Kellanova trades under “K.” Stocks for both companies dropped today upon the announcement of the completed split, MarketWatch reported.

In a statement, Kellanova CEO Steve Cahillane said the new company name signifies a new era of ambition for the company.

“We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world’s best performing snacks-led powerhouse,” Cahillane said.

Kellanova, which now houses snacks like Cheez-It, Rice Krispies Treats and Pringles, projects its net sales to reach between $13.4-$13.6 billion in its 2024 fiscal year. In an interview with Food Dive last year, Cahillane said the decision to focus solely on snacks will help it to grow its presence worldwide, allowing the company to better compete with giants of the category like Mondelez International and Hershey. M&A opportunities will also be a key focus, the CEO said in March.

Despite the name change, snacking and cereal products from both Kellanova and WK Kellogg Co will continue to emblazon the well-known “Kellogg’s” logo.

The split was first announced in June 2022, with Kellogg originally intending to create three separate businesses. Plans for a designated plant-based foods company were nixed earlier this year because of declining sales in the sector. Plant-based brands like MorningStar Farms now remain under Kellanova.

WK Kellogg Co is adopting the North American cereal portfolio of iconic brands — such as Froot Loops, Corn Flakes and Rice Krispies — at a time of stagnation for the staple breakfast item, while international cereal sales will continue to be handled by Kellanova.