Abstract

In March 2023, US-based multinational food manufacturing company Kellogg Company announced that it would be split into two different companies – WK Kellogg Co. (cereal business in North America) and Kellanova (international cereal and snacks business and frozen food in North America). The split was expected to create an upside growth potential for the company, and enable it to concentrate on individual brands. The company would become lighter and would be able to make products specific to each region and culture by allocating funds and marketing and by catering to local consumer preferences. The company said that through the split it would achieve its vision of becoming the “world’s best performing snacks-led powerhouse.”

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the reasons for a Spin-off
• Examine whether a Spin-off can create value for all the entities involved

Keywords

Kellogg’s; Kellanova; W K Kellogg; split; Spin-off; value creation; corporate splits; new firm formation; parent company; divestiture