Tag: Kellogg

Kellogg to split into 3 companies — snacks, cereals, and plant-based food

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kellogg Co, maker of Frosted Flakes, Rice Krispies, and Eggo, will break up into three companies focusing on cereals, snacks, and plant-based foods.

The spinoff of the yet-to-be-named cereal and plant-based foods companies should be completed by the end of next year, said Kellogg’s on Tuesday.

As of 2021, Kellogg’s net sales were $14.2 billion, largely fueled by its snack division ($11.4 billion), which makes Cheez-Its, Pringles, and Pop-Tarts, among other products. Cereal accounted for another $2.4 billion in sales last year while plant-based sales totalled around $340 million.

These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities, said CEO Steve Cahillane. 

Cahillane will become chairman and CEO of the global snacking company. The management team of the cereal company will be named later. The board of directors has approved the spin-offs. Shareholders will receive shares in the two spin-offs on a pro-rata basis relative to their Kellogg holdings. 

The cereal and plant-based meat companies will remain headquartered in Battle Creek, Michigan, where Kellogg was founded in 1906. The snack company __ which accounts for 80% of Kellogg’s current sales __ will have dual campuses in Battle Creek and Chicago, with its headquarters in Chicago. Kellogg’s three international headquarters in Europe, Latin America, and AMEA will remain in their current locations.

Kellogg has been sharpening its focus on snacks for years. In 2019, the company sold its cookie, pie crust, ice cream cone and fruit business to the Ferraro Group. This is a particularly perilous time in the food industry due to rising costs, both for labour and materials. Russia’s invasion of Ukraine has pushed grain prices higher and this month, the U.S. reported that inflation is hitting four-decade highs. Shares of Kellogg rose almost 4% to $70.15 in morning trading Tuesday.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nestle, Unilever go head-to-head in bid war for GSK’s consumer biz: report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nestle and Anglo-Dutch consumer giant Unilever are pitted against each other in the final round of talks for GlaxoSmithKline’s consumer nutrition business which includes Horlicks, The Economic Times reported.

The third contender Coca-Cola has opted out of the competition, the report said citing three people aware of the development.

The bids are believed to be in the range of $3.1 – 3.5 billion and the winner will also have to launch an open offer to buy an additional 26 percent stake in the GSK Consumer Healthcare, the report said.

The deadline for the submission of the final bid offer has been extended by a few days. The earlier deadline was on November 17, the report added.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kellogg, Reckitt Benckiser in race to acquire GSK’s Horlicks brand, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a move to gain access into the consumer nutrition business in India, British breakfast cereal maker Kellogg and UK based food company Reckitt Benckiser Plc are now eyeing GlaxoSmithKline’s consumer food arm, The Economic Times reported.

While Kellogg’s entry into the competition was seen as a surprise, Reckitt Benckiser has been growing inorganically across the world with its last acquisition in India being Paras Pharmaceuticals eight years ago, the report said.

According to the report, the British healthcare company’s strategy in acquiring consumer food business has helped increase its sales, better than its health and hygiene business which includes Dettol Soap and Air Wick brands. The company acquired US infant formula business Mead Johnson last year in a deal worth $18 billion, the report added.

GlaxoSmithKline with top malt-based nutritional brands Horlicks and Boost to its name, already has Nestle, Unilever, Mondelez and Coca-Cola as its top contenders for the near $4.5 billion takeover, said ET.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow