Kellogg, the maker of Frosted Flakes, Rice Krispies and Eggo, said it was splitting itself into three separate companies focused on cereals, snacks and plant-based foods.
Kellogg’s, which also owns and MorningStar Farms, the plant-based food maker, has said that the spinoff of the yet-to-be-named cereal and plant-based foods firms should be completed by the end of next year.
The company said its US, Canadian, and Caribbean cereal and plant-based divisions collectively represented about 20% of its net sales last year, while the remaining business accounted for around 80% of sales.
The company’s corporate headquarters will move from Battle Creek, Michigan, to Chicago, but it will maintain dual headquarters in both cities for its snack company.
Kellogg’s three international headquarters in Europe, Latin America, and AMEA will remain in their current locations.
Shares of Kellogg jumped 7% in pre-market trading.
Companies have begun to split up at an accelerated pace, including General Electric, IBM and Johnson & Johnson, but such splits are more rare for food producers. The last major split in the sector was in 2012, when Kraft split to create Mondelez.
