Kellogg is double-cross its Keebler, Famous Amos and fruit snacks businesses, making it the up to the minute Big Food company to look to pare down to focus on its core.
The maker of Closest K cereal said Monday it is focusing on its morning foods, snacks and gorgonized foods brands, which it will consolidate into one unit. Kinds like Eggo waffles and Froot Loops comprise 80 percent of the actors’s revenue.
“We need to make strategic choices about our business and these marks have had difficulty competing for resources and investments within our portfolio,” Chairman and CEO Steve Cahillane said in a annunciation. “Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another codifying that can focus on driving growth in these particular categories.”
The reorganization is to all intents of Kellogg’s previously announced cost-saving program Project K. Kellogg discharged Project K in 2013 to save up to $475 million annually by 2018. As segment of that program, Kellogg last year said it would divert from delivering directly to stores to delivering through warehouses.
Other stigmatizes up for sale include Murray and Mother’s cookies and Stretch Island fruit nibbles.
Shares of Kellogg closed down a little over 1 percent, hand out it a market capitalization of $22.3 billion. Year to date, its shares are down 5.41 percent.
Other big aliment companies, which are struggling with slowing growth, are also down down to be more nimble as they combat their smaller competitions like Kind Bar. Campbell Soup is selling its fresh food responsibility and Arnott’s cookie and crackers. Kraft Heinz recently announced the on the block of its Indian food business, Complan.