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Kellogg Company has announced its decision to split into three independent companies focusing on cereal, snacks, and plant-based foods. Chairman and CEO Steve Cahillane claimed the division will give each company greater autonomy to encourage innovation and growth. The breakup will occur through two tax-free spinoffs that will be completed by the end of 2023. Cahillane will remain as the CEO of the global snacking business, which will include the snack brands Pringles, Cheez-Its and Pop-Tarts, along with Kellogg's international cereal portfolio, the group's African noodles business and the US Eggo unit. Kellogg’s snacking business will focus on innovation, brand building and expanding internationally, including in South America and AMEA. While much smaller, the plant-based unit will be led by the Morning Star Farms brand and focus on growth and product innovation. Kellogg shares jumped as much as 5.5 percent on the day of the announcement, the most in over a year. Under the plan,
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"Kellogg to split into three companies focusing on cereal, snacks, and plant-based foods", Fortune.com, June 21, 2022
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Kellogg’s has turned to the U.K. High Court in a three-pronged attempt to prevent the upcoming government HFSS restrictions. Kellogg’s first argument claims the HFSS regulations should be declared “ultra vires” because enforcement powers given to local authorities to enforce the rules have never been approved by parliament. If the court decides the enforcement regime is illegal it could force the government to completely discard the legislation. It could also allow the regulations to continue but order the government to revaluate how they are enforced, leaving the ban in limbo. The second strand of Kellogg’s case centres on the HFSS nutrient profiling model, which was set up in 2004 as the basis for Ofcom’s policing of advertising aimed at children. Kellogg’s claims the model has never been before parliament. If the argument succeeds, the government would be forced to either drop the legislation or re-pass it with a different model. Kellogg’s third claim is that cereals should be
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"Kellogg’s: ‘HFSS laws would cost £113m in lost sales’", thegrocer.co.uk, June 17, 2022
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