CHICAGO -- Kellogg, the maker of Frosted Flakes, Rice Krispies and Eggo, has announced that it will separate into three different companies to create "greater strategic, operational, and financial focus" for each of the new firms that will be named at a later date.
Kellogg, which also owns MorningStar Farms, will separate its North American cereal and plant-based foods business -- which represent an estimated 20% of Kellogg's net sales in 2021 -- from its global snacking brands, cereal and noodle brands and frozen breakfast brands.
"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value," said Steve Cahillane, Kellogg Company's Chairman and Chief Executive Officer in a statement announcing the company's plans Tuesday. "This has included re-shaping our portfolio, and today's announcement is the next step in that transformation."
"These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities," Cahillane continued. "In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth."
Kellogg expects these moves to be completed by 2023 and the headquarters for the three companies set to focus on their global snacking brands, their cereal brands and their plant-based food brands will remain unchanged.
Said Kellogg: "After several years of transformation and improving results, the Company believes it is the right time to separate these businesses so they may pursue their particular strategic priorities."
Shares of Kellogg Co. jumped 8% to $73.29 before the opening bell Tuesday.
The Associated Press contributed to this report.