The Best Cereal Company Is Being Broken Apart
The oldest cereal company that makes some of the best cereal in the world is being broken up into three diffrent parts, which might sound like band news.
This article is more than 2 years old
Kellogg’s have been a part of most of our childhoods. Whether it was its long-spanning choices of breakfast cereal or the tons of snacks under the company’s umbrella, we have all experienced their food at one point or another. The company has been around since 1906, which is an incredibly long time. Now, it has been announced that the core company is going to be split into three different entities. These three different versions of Kellogg’s will be handling the three different areas of their food offered.
Kellogg’s will now be known as Global Snacking Co., North America Cereal Co., and Plant Co. We certainly think that takes the special feeling out of seeing Kellogg’s or hearing their name. Each new branch of the company will be handling a different division of food. Global Snacking Co. will now be responsible for some of the most famous snacks we have come to love. Pringles, Pringles, Pop-Tarts, Rice Krispies Treats, Cheez-It and Nutri-Grain bars are all part of this new division. The most obvious division is the North American Cereal Co. which will handle the known cereal lineup like Frosted Flakes, Mini-Wheats, Froot Loops, Special K, Raisin Bran, and Corn Flakes. The final third division of Plant Co. is meant to handle MorningStar Farms and all the plant-based options available.
This could mean a good thing for Kellogg’s as it might mean the company has grown so large that it cannot house all of these separate divisions under one umbrella. However, there is growing concern that this move to split into three different companies might hurt the consumer the most. Twitter has exploded with confusion, including the timeframe of the decision. Four plants had seen work stoppage, including the headquarters plant in Battle Creek, Michigan. Workers fought for better conditions and had just struck a new five-year deal that would prevent plan closures and offer much better pay after they spent 11 weeks striking.
CEO of Kellogg’s, Steve Cahillane, has attempted to quell the rumors that something worse was happening behind the scenes for the company. According to the company’s statement, “All three businesses have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. Each is expected to create more value for all stakeholders and build a new era of innovation and growth.” This is just speculation, but maybe the company has grown to the level where it’s safer to split into three different divisions. Hopefully, that is the case, and the workers and consumers are met with some serious drawbacks from this decision. The the only thing we ask is that Froot Loops keeps being made, then we are fine with this new split.
It is strange that Kellogg’s is going to cease to exist and be replaced by these new names that don’t have the same heart or ring to their names. This may seem like an odd choice, but we don’t want to presume to know what is happening behind the scenes. It just sounds like each of the three companies can now focus solely on their division of food, and potentially make the food that much better. Now if we can suggest combining Froot Loops and Mini-Wheats into the same cereal, we want our cut of the profits. That is a million-dollar idea. Or, a Pringles can that won’t trap anyone’s hand. Think about it, Kellogg’s.
