-KH News Desk(cbedit@imaws.org)
Kellogg is set to unveil a new look for its two businesses as it carries out an initiative aimed at boosting its valuation for investors. The cereal and snacks giant has announced that its two businesses will be named Kellanova and WK Kellogg Co after a planned breakup later this year. Kellanova will house popular snack brands like Pringles, Cheez-It, and Pop-Tarts as well as the company’s plant-based food business Morningstar. The new business, to be run by CEO Steve Cahillane, is expected to trade under Kellogg’s current stock ticker symbol “K” on the New York Stock Exchange. The name Kellanova is intended to reflect the 117-year-old company’s heritage while also signaling a new era of growth.
The traditional cereal business, which includes brands like Froot Loops and Corn Flakes, will be called WK Kellogg Co in a nod to the company’s founder, William Keith Kellogg. The company has yet to release information on the business’s stock symbol and exchange.
Kellogg CEO Steve Cahillane acknowledged that renaming the iconic 117-year-old company was a daunting task, but said that Kellogg’s brand name will still be seen on brands like Corn Flakes. The restructuring is aimed at boosting Kellogg’s valuation for investors and comes as the company looks to focus on its more profitable snack business. The new business names will be unveiled by the end of the year, and the restructuring is expected to help the company accelerate its growth by enabling it to better focus on each business’s specific needs. The move is also expected to benefit investors by allowing them to assess the value of each business separately.
Kellogg Company’s Chairman and CEO Steve Cahillane said, “Unveiling the names for the global snacking and North American cereal businesses is an exciting milestone for both companies as we progress towards unleashing their full potential as standalone businesses.” He added that upon spin completion, both businesses will be better positioned to focus on their distinct strategic priorities, execute with increased agility and operational flexibility, and realize improved outlooks for profitable growth.
