Kellogg Co. Set to Spin Off Cereal Business in Q4

Kellogg Co. announced that its planned split into two companies, WK Kellogg Co. and Kellanova, is set to be finalized in Q4 2023. WK Kellogg Co. will focus on cereals in North America, while Kellanova will focus on snack foods and growth opportunities in foreign markets. Kellogg's snack food business, including brands like Pringles and Pop-Tarts, generates the majority of the company's revenue. The company aims to increase its global market for its snack business, particularly in emerging markets. Kellogg will keep its plant-based food business, MorningStar Farms, and expects flat sales growth for WK Kellogg Co. due to the decline in cereal consumption in the US. The plant-based meat industry is expected to consolidate, and Kellogg anticipates better days for MorningStar Farms. Food packaging industries may face pressure to improve volume sales as food price inflation levels off in 2024.