Kellogg mulls sale of brands in North American restructure

By Block Scientific Inc

Prominent US food manufacturer Kellogg is looking to sell some of its brands as it restructures its business in North America.

The group will focus on its core breakfast and frozen divisions, with three segments – morning foods, snacks and frozen foods – being amalgamated into one division as of January 2019, in a move that will see the sales teams join together.


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This will mean the sale of Kellogg’s fruit snacks business as well as Keebler and Famous Amos brands in favour of brands from the above free divisions – including Eggo waffles and Froot Loops – which currently make up about 80% of the company’s revenue.  

Chairman and CEO Steve Cahillane said: “Kellogg Company’s Deploy for Growth Strategy, announced earlier this year, calls for the company to sharpen our focus and align our resources around our biggest opportunities to grow our top line and return to long-term sustainable growth.

“Ultimately, we believe these changes will make Kellogg more agile and better focused on growing demand for our foods.”

In terms of the brands Kellogg hopes to sell, he added: “We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio. Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organization that can focus on driving growth in these particular categories.”


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