Kellogg, the 117-year-old brand that started as a breakfast cereal company has since expanded to be one of the largest food companies in the world, has seen declining cereal sales over the past couple of decades.
The one-time category leader is now facing a number of setbacks, including numerous lawsuits over its products’ nutritional value amid a more health-conscious consumer base. And in 2021, the food giant sustained a damaging fire at its Memphis facility, and later that same year 1,400 workers went on strike to demand better pay and enhanced benefits. Workers eventually ended the three-month strike and agreed to a new contract in December, which included a $1.10 per hour raise for all employees.
In an effort to stimulate growth, on June 21, 2022, the company announced plans to split into three separate companies.
“Right now is the opportune time to do this. We are coming from a position of real strength and great momentum. We have completely turned the business around from a top-line and bottom-line perspective. And we see the next step in our potential in unlocking three new companies,” said Kellogg CEO Steve Cahillane.
Watch the video to learn more about Kellogg’s move to split the company in order to try to kickstart cereal sales and regain some of its bygone glory.
Source: Business - cnbc.com
