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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Iconic Brands Team Up for Old Bay Seasoned Goldfish
Leading snack brand Goldfish crackers, in partnership with the iconic seasoning brand, Old Bay, is releasing Limited Edition Old Bay Seasoned Goldfish, a flavor that brings the bold seafood seasoning staple to everyone’s favorite fish-shaped cracker. Goldfish and Old Bay fans and those with a love for big, bold flavors can get their hands on this unique flavor starting in May wherever Goldfish are sold, for a suggested retail price of $2.79 per 6.6-ounce bag, while supplies last.
Old Bay lovers are wildly passionate about their favorite seasoning. Goldfish found that fans have long-been sprinkling Old Bay’s blend of 18 herbs and spices on each handful of Goldfish. As a result, the Old Bay and Goldfish teams knew they had to join forces to deliver a delicious, one-of-a-kind snacking experience for fans and foodies, alike.
Old Bay Seasoned Goldfish crackers are made with Old Bay’s popular spice blend including black pepper, paprika, celery salt and red pepper flakes, creating a big, bold flavor combination that complements the classic, premium quality taste of Goldfish.
“What I find most exciting about this partnership is that once again Goldfish is showing up for our flavor enthusiasts in a big, bold way,” said Janda Lukin, chief marketing officer of Campbell Snacks. “Old Bay Seasoned Goldfish harnesses the fandom of two iconic brands and brings consumers a new way to experience their favorite zesty flavor on their beloved fish-shaped cracker, just in time for summer.”
“Old Bay seasoning is delicious on everything from seafood to French fries and everything else! We know our passionate fans often sprinkle Old Bay on their favorite recipes and snacks, including Goldfish crackers,” said Jill Pratt, chief marketing officer, McCormick & Company. “With each handful, Old Bay Seasoned Goldfish provides our most loyal fans with another fun, bold way to experience our popular spice blend.”
The launch of Old Bay Seasoned Goldfish marks the second time Goldfish and McCormick & Company have collaborated. The two partnered in April 2021 to debut Frank’s RedHot limited-edition flavored crackers. Hot was the most-requested Goldfish flavor across social media and became ranked as the fastest selling cracker launch of Summer 2021.
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Misfits Market Launches Private Label Brand
Online grocery platform Misfits Market has launched its first private label, Odds & Ends, which includes pantry staples such as coffee and snacks like nuts, dried fruit and dark chocolate-covered mini pretzels.
Many of Misfits Market’s Odds & Ends products have been specifically designed to address supply chain inefficiencies. By working directly with farmers and producers who share the company’s vision of eliminating waste, Misfits Market is taking new steps to prioritize sustainability and utilize creative sourcing methods to offer high-quality staple products at value.
For example, Misfits Market’s new direct trade premium coffee blend is purchased directly from the farms where it was grown in the context of lasting and mutually beneficial relationships, providing growers with fair prices and stable incomes while protecting them from market risk and volatility. The end result is a better market for their coffees and more accessible, high-quality coffee for consumers.
“Three years ago, Misfits Market set out to rebuild the food supply chain from scratch in order to provide everyone, regardless of where they live, access to quality food at an affordable price,” said Abhi Ramesh, CEO and founder. “It’s clear that shoppers are looking for new ways to save, especially with food prices at all-time highs. Our value-conscious customers are saving an average of $25 per order and with the launch of our new private label line, we’re excited to provide our customers with an even wider variety of affordable and sustainably sourced pantry staples.”
To date, the company has sent out nearly 13 million orders and rescued more than 230 million pounds of food. In Q1 alone, the company has experienced record-breaking growth fueled by expanding to all of the lower 48 states, launching product categories such as wine, releasing the brand’s mobile app and now Misfits Market’s private label launch.
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