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Kellogg to Split Cereal, Plant-Based Foods Businesses

Kellogg Company‘s board of directors has approved separating its North American cereal and plant-based foods businesses, via tax-free spin-offs, resulting in three independent public companies, each better positioned to unlock their full standalone potential. The three companies, whose names will be determined later, would be the following:

  • Global Snacking Co., with about $11.4 billion in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic, world-class brands and strong underlying growth momentum and profitability;
  • North America Cereal Co., with about $2.4 billion in net sales, will be a leading cereal company in the United States, Canada, and Caribbean, with a portfolio of iconic, world-class brands and compelling opportunities for investment and profit growth; and
  • Plant Co., with about $340 million in net sales, will be a leading, profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.

“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value.  This has included re-shaping our portfolio, and today’s announcement is the next step in that transformation,” said Steve Cahillane, chairman and CEO.  “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 turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”

In recent years, the company has transformed its portfolio into one that has expanded geographically and shifted toward growing businesses, particularly in snacking categories.  To achieve this, it has directed resources and investments toward growth categories and markets around the world, made several acquisitions and partnerships in emerging markets, and strengthened its snacks business through acquisitions, divestitures, and the freeing up of resources by exiting from direct-store delivery.  The successful execution of these actions has expanded Kellogg’s portfolio, resulting in a scaled global snacking business and significant emerging markets presence, complemented by strong and profitable breakfast and plant-based foods businesses.  The outcome of these strategic actions has been improved growth in recent years, with momentum sustained into 2022.

After several years of transformation and improving results, the company believes it is the right time to separate these businesses so they may pursue their particular strategic priorities.

As independent companies, all three businesses will be better positioned to:

  • Focus on their distinct strategic priorities, with financial targets that best fit their own markets and opportunities;
  • Execute with increased agility and operational flexibility, enabling more focused allocation of capital and resources in a manner consistent with those strategic priorities;
  • Realize improved outlooks for profitable growth; and
  • Shape distinctive corporate cultures, rooted in Kellogg Company’s strong values, and rewarding career paths for employees of each company.

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Smartwater Names Zendaya as Brand Ambassador

As Smartwater’s global brand ambassador, acclaimed actor and performer Zendaya will appear in a series of new creative from the brand and support community water programs that will directly affect thousands of women.

Created in partnership with VMLY&R and WPP/OpenX, the campaign creative began rolling out in the United States from June 21 across television, audio, social and streaming channels, with global markets to follow. The campaign celebrates those who keep it smart, whatever the choice, and aren’t afraid to free themselves from the restraints of convention.

Zendaya will work with Smartwater to support community water quality and access improvements in various cities around the world, starting with Zendaya’s hometown of Oakland, Calif., by partnering with the Global Water Challenge – a coalition of leading organizations collaborating to achieve universal access to clean drinking water. In the United Stttes alone, 2.2 million people have no water at home and 44 million Americans are served by water systems that don’t function optimally.

The brand, GWC and Zendaya are launching the Smart Solutions: Global Water Challenge, which will invite local organizations to apply for grant funding to GWC’s women for water action platform that uplifts women and their communities through the power of clean water access. These efforts build on more than a decade of investments in clean water access around the world from The Coca-Cola Company, which have reached more than 18.5 million people since 2010. GWC’s work has proven that with access to clean water, people, especially women and girls, are healthier, safer, educated and employed.

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Amber Beverage Group Taps Ruslan Romanenko as CFO

Amber Beverage Group has appointed Ruslan Romanenko as group chief financial officer. Romanenko is a senior financial executive with over 25 years of experience in the industry and becomes part of the ABG executive board.

Before joining ABG, Romanenko worked as chief financial officer at Nemiroff, one of the leading vodka producers in Ukraine. Prior to this, he held similar executive roles at companies that included TerraFood, Bunge, and Philip Morris Ukraine. As well as being an experienced financial manager, Romanenko is able to develop and lead large multicultural finance and accounting teams.

“I am thrilled to have been appointed to this key role by Amber Beverage Group,” Romanenko said. “This global company, which has operations in several countries, will bring interesting and exciting new challenges where I can use my experience to help drive further growth. I am already enjoying my new environment as this role entailed a move from Kyiv to Riga. I am especially proud to join a company that has been offering so much practical and financial support to the people of Ukraine.”

Amber Beverage Group is a rapidly growing global spirits company, whose products are found in millions of households and venues across the globe. ABG’s core brands are Moskovskaya Vodka, Rooster Rojo Tequila, KAH Tequila, The Irishman Whiskey, Writers’ Tears Whiskey, Riga Black Balsam, Cross Keys Gin and Cosmopolitan Diva.

ABG produces, bottles, markets, distributes, exports, and retails a comprehensive range of beverages of which it owns more than 100 and is responsible for marketing and distributing 1,300 third-party drinks brands, spanning everything from premium vodka and sparkling wines to specialty Mexican tequilas and Irish whiskey.

The company has grown from its original core production business in the pan-Baltic region established in 1900, to a global spirits industry player that unites around 2,050 employees in almost 20 companies including Austria, Australia, the Baltic States, Germany, Ireland, Mexico, and the United Kingdom.

The August issue of Gourmet News will include an article about how specialty food companies with ties to Ukraine are supporting the country because of the Russian invasion. Subscribe now so you don’t miss it!