October 2, 2023
Kellogg’s cereal business began trading Monday on the New York Stock Exchange as WK Kellogg Co. The company’s broad snacks division is now trading under the name Kellanova. The split was first announced 16 months ago.
WK Kellogg Co. began trading under the ticker symbol “KLG” while Kellanova trades under “K.” Stocks for both companies dropped today upon the announcement of the completed split. Kellanova opened at $55.24 per share and closed at $52.50, while WK Kellogg Co. opened at $14.49 and closed at $13.30.
In a statement, Kellanova CEO Steve Cahillane said the new company's name signifies a new era of ambition for the company.
“We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world’s best performing snacks-led powerhouse,” Cahillane said.
Kellanova, the new home of snacks such as Cheez-It, Rice Krispies Treats and Pringles, projects its net sales to reach $13.4 million-$13.6 billion in its 2024 fiscal year. In an interview with Food Dive last year, Cahillane said its focus on snacks will help it to grow its presence worldwide, allowing the company to better compete with giants of the category like Mondelēz International and Hershey. M&A opportunities will also be a key focus, the CEO said in March.
Despite the name change, snacking and cereal products from both Kellanova and WK Kellogg Co. will continue to emblazon the well-known Kellogg’s logo.
The split was first announced in June 2022, with Kellogg originally intending to create three separate businesses. Plans for a designated plant-based foods company were nixed earlier this year because of declining sales in the sector. Plant-based brands like MorningStar Farms remain under Kellanova.
WK Kellogg Co. is adopting the North American cereal portfolio of iconic brands such as Froot Loops, Corn Flakes and Rice Krispies at a time of stagnation for the staple breakfast item, while international cereal sales will continue to be handled by Kellanova.
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