Kellogg, the 117-year-old brand that began as a breakfast cereal company that has since become one of the largest food companies in the world, has seen cereal sales decline over the past few decades.
The once category leader is now facing a series of setbacks, including several lawsuits over the nutritional value of its products among a more health-conscious consumer base. And in 2021, the food giant suffered a devastating fire at its Memphis facility, and later that year 1,400 workers went on strike demanding better pay and better benefits. The workers eventually ended a three-month strike and agreed to a new contract in December, which included a raise to $1.10 an hour for all employees.
In an effort to encourage growth, on June 21, 2022, the company announced plans to split into three separate companies.
“Now is the right time to do it. We’re coming from a position of real strength and great momentum. We’ve completely transformed the business from a top-line and bottom-line perspective. And we look to our next steps.” Has the potential to “unlock three new companies,” said Steve Cahillane, CEO of Kellogg.
watch the video Read on for more about Kellogg’s move to split the company in order to try to kickstart cereal sales and recapture some of its former glory.