We understand why Kellogg wants to ditch cereals to focus on the faster growing snack business. It’s less clear that this is better for shareholders, who will find themselves owning a standalone pod business in a disadvantaged category without the benefits of the larger group’s synergies.
The company announced on Tuesday that it would divest its North American cereal business, home to mid-20th century marketing icons such as Tony the Tiger and Toucan Sam, with approximately $2.4 billion in sales last year. last year. It will also divest, or possibly sell, its plant-based foods business, including the MorningStar Farms brand, with approximately $340 million in sales.
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Post expires at 6:14pm on Sunday July 3rd, 2022