The Split of Kellogg: Kellanova and W K Kellogg

The Split of Kellogg: Kellanova and W K Kellogg
Case Code: BSTR685
Case Length: 13 Pages
Period: 2022-2023
Pub Date: 2024
Teaching Note: Available
 Price: Rs.400
Organization : Kellogg Company
Industry : Food & Beverage
Countries : United States
Themes: Business Level Strategies, Strategy Implementation
The Split of Kellogg: Kellanova and W K Kellogg
Abstract Case Intro 1 Case Intro 2 Excerpts

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.”

Issues

The case is structured to achieve the following teaching objectives:

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

Contents

Keywords

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

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