Kellogg’s Cereal Business Split Becomes Official

Kellanova — the company once known as Kellogg — said the spin-off of its cereal business is official.

The company announced Monday (Oct. 2) that it had completed the separation, with WK Kellogg Co. now trading on the New York Stock Exchange, allowing Kellanova to focus on its snack business.

Kellogg announced its intent to split into two companies last year, and in July filed paperwork with the Securities and Exchange Commission (SEC) detailing plans for the separation.

Kellanova keeps the company’s global snacks businesses, frozen food in North America and cereals in markets outside North America, while WK Kellogg Co.’s offerings will include cereal in the U.S., Canada and the Caribbean.

“With the completion of the separation, Kellanova has entered a new era with a new name and a new ambition,” Steve Cahillane, Kellanova’s chairman and CEO, said in a news release. “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.”

Kellanova’s brands include Pringles, Pop-Tarts, MorningStar Farms, Nutri-Grain and Eggo. The company says the Kellogg’s brand will remain on products, despite the corporate name change.

During an earnings call in August, the company said that while WK Kellogg Co.’s category was seeing growth in the high single digits, Kellanova’s categories were experiencing growth between low single digits and double digits, depending on the segment.

Cahillane argued that by spinning off the North American cereals business, the new company will be better positioned to promote growth in the category.

“You’ll have a sales organization that’s 100% focused on North American cereal, and they’ll have goals that are ambitious and I think very achievable as we continue to look forward to North American cereal and what its true potential is,” he said.

The split is happening at a time when snacks remain a reliable grocery store purchase for consumers, even in the face of high prices.

PYMNTS Intelligence found that among the 75% of consumers who purchase “nice-to-have” items at the grocery store at least sometimes, sweets are by far the most common indulgence.

Forty-one percent of grocery shoppers said desserts, candy or sodas were their latest splurge — a larger share than said the same of any other such nonessential food or beverage.