Kellogg’s, the maker of Frosted Flakes and Rice Krispies, will split into three companies focused on cereals, snacks, and plant-based foods.
The Kellogg Company, one of the original perpetrators of “woke capitalism,” made the surprise announcement on Tuesday following years of falling sales.
The company will split into three publicly-traded companies whose names will be determined later, Kellogg revealed in a statement.
The break-up, which is expected to be a tax-free transaction, has been approved by its board of directors.
Kellogg’s, which also owns plant-based food maker MorningStar Farms, said the break-up should be completed by the end of next year.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareholder value,” said Steve Cahillane, the company’s chief executive and board chairman.
The company has been investing in far-left causes for several years now, according to Breitbart.
As Breitbart News reported in 2017:
Every time an American family picks up a box of Kellogg’s cereal at the grocery store, it is contributing to the wealthy radical leftwing foundation that agitates for open borders, supports George Soros’s Open Society Insitute, and pushes a host of leftwing causes.
The W.K. Kellogg Foundation is the largest shareholder of the Kellogg Company.
According to its 2016 tax filing, the Kellogg Foundation’s trust owns approximately $5.2 billion of stock in the company, about 20 percent of the company’s equity.
The other large holders are mostly passive investors such as mutual funds and their ownership is a fraction of the foundation’s.
That means that the foundation effectively controls the famous cereal company.
Back in 2016, the Kellogg Company called for a blacklist of Breitbart, saying that the news organization did not reflect its values.
This prompted a #dumpkellogg’s boycott in response that AdWeek described as inflicting huge damage to the company’s reputation.
Kellogg shares have been volatile over the past five years but have failed to gain value.
Five years ago, the stock traded at around $70 a share.
On Monday, shares were around $67.50.
Year-to-date, however, the stock has gained around four percent, outperforming the major indexes which recently entered into bear market territory.
Shares were trading around $73 at the time Kellogg announced its blacklisting of Breitbart.
The all-time high was around $81 a share in the spring of 2016.
The new businesses will be divided into a global snacking company, a North American cereal company, and a plant-based food company.
US cereal sales have been waning for years as consumers moved to more portable products, like energy bars,” according to The New York Post.
They saw a brief spike during pandemic lockdowns when more people sat down for breakfast at home.
But sales fell again last year.