Your daily Kellogg’s cereals may be splitting three ways soon. Not really! But the cereal family master brand is breaking up with the Snacks family such as Pringles pretty soon. The 116-year-old company has hinted that it will be spinning off its operations by 2023.
Splitting operations, is this the new trend?
Kraft Foods, did the same a decade ago, General Electric Co. and Johnson & Johnson also announced the same last year. Kellogg cereals including cereals ready-to-eat Kellogg’s raisin bran will now be a separate operation.
What does it mean for the Kellogg’s stock price?
Well surprisingly for Kelloggs, shares actually rose about 7-8% before the market opened despite global stocks taking a deep dive, making its overall stock is up more than 3-4% for the year.
Kellogg ambitious moving forward
The management remains positive and believe good things are coming their way. The split is expected to do wonders for them and they expect their flag ship to be actually the snack division. But are they all healthy?
By the looks of it, may be not. Their snacks raked in more about $11 billion in sales last year, and 60% of it came from Pop-Tarts, Nutri-Grain, Pringles and Cheez-It. I leave it to you all to decide.
List of popular Kellogg cereals including cereals ready-to-eat and Kellogg’s raisin bran
- Cereal and Granola
- Kellogg’s Frosted Flakes®
- Froot Loops® including my daughter’s favorite Unicorn Froot Loops
- Frosted Mini-Wheats®
- Rice Krispies®
- Corn Pops® including my personal favorite Coco Rocks (don’t judge me!)
- Smart Start®
- All Bran/Bran Buds
- Apple Jacks line
- Corn Flakes line
- Crispix line
- Disney Line
- Special K
What does the future hold for Kellogg cereals and its other brands?
I leave it to you to decide, the split is definitely a clear direction for Kellogg to disassociate themselves from the cereals division as their sales have been going down gradually. It remains to be seen if the split will catapult them back into people’s daily breakfast and afternoon snacks.
Leave your thoughts in the comments section. Are you a big fan of the cereals or the snack?
