Strategic buyers are continuing to reshape their portfolios as firms expand both geographically and in new growth markets. As globalization continues to play a central theme for corporate growth, Kellogg has gotten into the portfolio shake-up game.

Kellogg is separating its North American cereal and plant-based foods business. The transaction will result in three standalone businesses:

1. “Global Snacking Co.” which will focus on global snacking, international cereal, and noodles

2. “North America Cereal Co.” the firm’s iconic cereal brands like Froot Loops and Frosted Flakes across the U.S., Canada, and Caribbean

3. “Plant Co.” a pure-play plant-based foods company.

Like many other conglomerates, Kellogg has revamped its portfolio through M&A. In 2020, the company invested $43 million to expand its MorningStar Farms manufacturing plant to support its new “Plant Co.” business unit. Kellogg now looks at its portfolio as a scaled global snacking provider across emerging markets with strong and profitable complementary business units. As a result of the shake-up, Kellogg and like-minded firms will be able to pursue each business unit’s specific strategic priorities with distinct goals, profitability, and culture.

“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” says Kellogg CEO Steve Cahillane. “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.”

With companies continuing to strategically reshape their firms around the world, expect to see other big conglomerates follow suit.

-Cole Lipsky