First BTS, now this

Call your significant other to check-in, because breakups are all the rage rn.

Kellogg’s, the multinational food manufacturing company headquartered in Battle Creek, Michigan, became the latest to hop on the trend, announcing yesterday that it’s breaking up into three separate companies.

😋🥣🌱 And then there were three… The yet-to-be-named solo brands are as follows:

1. Snacks. Think: Pringles, Cheez-Its, Pop-Tarts, etc. This division is a heavy-hitter for Kellogg’s, the $11.4 billion business accounted for 80% of the company’s net sales last year.
2. Cereal. This division, which is the second-largest cereal supplier in the US after General Mills, includes hard-working salespeople like Tony the Tiger, Snap, Crackle, Pop, and Toucan Sam.
3. Plant-based. In early 2020, Kellogg’s released a line of plant-based burgers and tenders called Incogmeato. The company plans to expand that and other plant-based brands it owns in North America first, then globally; this division brought in $340 million in net sales last year.

🚗 Driving the move... Kellogg aims to create more agile, focused companies that can better adapt to shifting market trends – a marked difference from the food industry’s decadeslong strategy of pursuing acquisitions and building scale, according to the WSJ.

🔀 Zoom out: Kraft Foods orchestrated a similar split about 10 years ago, spinning off its North American grocery business to focus on its faster-growing snack brands including Oreos and Triscuits, a business it named Mondelez International Inc.