Kellogg’s Finalizes Company Split, Mondelēz Completes Gum Business Sell-Off
The consumer goods sector has experienced several structural changes this week. Two transactions, one from the formerly known Kellogg Company and the other from Mondelēz, have been finalized.
The previously announced separation of Kellogg’s into two independent, public companies has concluded. Kellanova and WK Kellogg Co. have gone live, with WK Kellogg Co., now trading on the NY stock exchange.
Kellanova now becomes a global snack conglomerate for brands like Pringles, Cheez-It, Pop-Tarts, Rice Krispies, Eggo, and more.
Kellanova will maintain dual campuses in Battle Creek, Michigan, and Chicago, Illinois, with corporate headquarters located in Chicago.
"With the completion of the separation, Kellanova has entered a new era with a new name and a new ambition," said Steve Cahillane, Kellanova's chairman and CEO, in a statement. "We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world's best performing snacks-led powerhouse."
The company said the split will result in “greater operational focus and fit-for-purpose strategy and resource allocation,” allowing Kellogg to invest in differentiated brands to deliver strong net sales and earnings growth over time.
Cereal company WK Kellogg Co includes brands such as Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi, and Bear Naked.
Gary Pilnick, chairman and chief executive officer of WK Kellogg Co., said the new company has the spirit of a start-up and the strong foundation of iconic brands.
"We are writing the next chapter of our founder W.K. Kellogg's original story. We are confident that as a standalone, publicly traded company, we are well positioned to deliver on our strategic objectives, win in cereal, and create value for customers, consumers, employees, communities and shareholders," added Pilnick.
Kellogg previously announced its separation plan last summer, with the initial goal of separating into three business segments — the third being Plant Co. However, the company decided to roll its plant-based products into Kellanova’s snacking portfolio.
Both divisions will continue to share the Kellogg branding on product packaging. The companies have a dedicated website for ongoing updates: Unleashing Our Potential
Perfetti Van Melle Claims Gum Business
Mondelēz International has sold off its developed-market gum business in the U.S., Canada, and Europe (excluding Portugal) to confectionary company Perfetti Van Melle Group, which acquires several brands and manufacturing facilities. Brands include Trident, Dentyne, V6, Bubbaloo, among others.
The previously announced sell-off is part of Mondelēz’s larger portfolio reshaping strategy and the company will continue to operate its gum business outside these regions, led by Stride in China.
“As we continue accelerating growth to become the global snacking leader in chocolate, biscuits, and baked snacks, we are pleased to transition our developed market gum business to a global, privately owned, values-driven company with a strong and proven track record of brand investment and innovation,” said Dirk Van de Put, chairman and CEO, Mondelēz International, in a statement. “We are incredibly proud of the talented colleagues who made these brands so successful, and we wish them all the best as they join the Perfetti Van Melle team.”
Egidio Perfetti, chairman of Perfetti Van Melle Group, said the acquisition aligns with the company’s strategic goal of being a global leader in gum.
“We expect to further bolster our product portfolio, manufacturing capacity, market distribution and financial results, effectively doubling our size in North America and increasing our reach in Europe, serving more consumers with our well-loved brands,” he said
Mondelēz is retaining the Portugal portion of the business until it receives regulatory approval.
