ZEENAT MOORAD: Kellogg rejigs and sharpens its focus
To sharpen its focus on just snacks and cereals, Kellogg has sold off a swathe of biscuit brands for $1.3bn
To sharpen its focus on just snacks and cereals, Kellogg has sold off a swathe of biscuit brands for $1.3bn. The company makes cereal brands many of us would once have eaten, or still do: Rice Krispies, Coco Pops, Corn Flakes, Froot Loops … I could go on, but in the interest of brevity and to avoid a surfeit of nostalgia I’ll stop here. In shafting low-priority businesses, Kellogg, with a market cap of roughly $19.72bn, aims to consolidate its morning foods, snacks and frozen foods divisions into a single business unit. The rejig forms part of Kellogg’s cost-saving Project K, which was launched in 2013 with the intention of saving up to $475m a year. It includes delivering through warehouses, instead of directly to stores. The buyer of said biscuit brands is Italian confectionery group Ferrero, which makes things like Nutella, Kinder and Ferrero Rocher chocolates. Ferrero entered the US market in 1969 with its Tic Tac mints. There isn’t a "Big Food" company that isn’t making adjustm...
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