Kellogg's Corn Flakes owned by Kellogg Company is seen for sale at a store in Queens, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly

Kellogg to split into three to focus on snacks

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2022-06-21 13:00:10

Kellogg's Corn Flakes owned by Kellogg Company is seen for sale at a store in Queens, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

June 21 (Reuters) - Kellogg (K.N) said on Tuesday it was splitting into three independent companies by spinning off its North American cereal and plant-based foods businesses, becoming the latest big U.S. firm to break itself up.

Shares of the company, which began life in 1894 when W.K Kellogg created Corn Flakes and became known around the world for its breakfast cereals, jumped 7% in pre-market trading.

In recent years, however, the company has focused on building its snacking portfolio, which includes its international cereals and noodles, and North America frozen breakfast business. The division brought in $11.4 billion in net sales in 2021, accounting for 80% of its total sales.

Kellogg said its other two divisions - U.S., Canadian, and Caribbean cereal and plant-based businesses - collectively represented about 20% of its net sales in 2021.