UPDATE: Kellogg exploring a sale of Keebler, Famous Amos and fruit snack businesses
Source: CNBC
Kellogg is selling its Keebler, Famous Amos and fruit snacks businesses, making it latest Big Food company to pare down its business to focus on its core.
The maker of Special K cereal said Monday it focusing its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company's revenue.
"We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio," Chairman and CEO Steve Cahillane said in a statement. "Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organization that can focus on driving growth in these particular categories."
This story is developing. Please check back for updates.
Read more: https://www.cnbc.com/2018/11/12/kellogg-says-it-is-exploring-a-sale-of-its-cookies-and-fruit-snacks-businesses.html
Looks like end of year write-offs beginning to happen...
Original article -
"We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio," Chairman and CEO Steve Cahillane said in a statement. "Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organization that can focus on driving growth in these particular categories."
The maker of Special K cereal is consolidating its morning foods, snacks and frozen foods business units into a single unit.
This story is developing. Please check back for updates.
https://www.cnbc.com/2018/11/12/kellogg-says-it-is-exploring-a-sale-of-its-cookies-and-fruit-snacks-businesses.html
mahatmakanejeeves
(57,600 posts)MontanaMama
(23,337 posts)You beat me to it.
BumRushDaShow
(129,445 posts)DUzy!
lastlib
(23,286 posts)mahatmakanejeeves
(57,600 posts)sandensea
(21,664 posts)Life's little coincidences.
George II
(67,782 posts)Thoughts and prayers.
marybourg
(12,634 posts)Like the swing of a pendulum. But these are the geniuses the publicans want to run the government.
BumRushDaShow
(129,445 posts)jmowreader
(50,562 posts)The units Kellogg's is planning to spin off are probably strong enough to survive as an independent company. I would add candies, salty snacks, nuts and meat snacks to create a full-line snack foods company.
BumRushDaShow
(129,445 posts)because I sortof remember it...
And it was back in 2000!
By GREG WINTEROCT. 27, 2000
The Kellogg Company, the maker of Eggo waffles and Rice Krispies cereal, announced today that it would acquire the Keebler Foods Company for $3.86 billion in cash. The deal would combine the leading breakfast cereal company in the world with the second-largest cookie and cracker maker in the United States, and unite several widely recognized marketing icons, including Tony the Tiger; Snap, Crackle and Pop; and the Keebler Elves.
With about 40 percent of its business in cereals, Kellogg has been particularly hard hit as consumers have moved away from traditional sit-down meals in favor of convenience foods like breakfast bars. Kellogg's cereal sales have declined roughly 2 percent this year, weighing on the company's earnings and testing investors' patience.
While Quaker Oats, a Kellogg rival, owns Gatorade, a dominant brand in the rapidly growing category of noncarbonated beverages, Kellogg has had little outside of its cereal business to propel it forward. Sales of its Pop-Tarts have increased about 8 percent in recent years, but the company has been unable to eke out enough momentum from its secondary products to generate the double-digit earnings growth many investors expect from food companies.
Acquiring Keebler gives Kellogg a foothold in the fast-growing snack foods category, potentially easing the company's problem of being the dominant player in a dwindling segment of the food business.
https://www.nytimes.com/2000/10/27/business/kellogg-agrees-to-buy-keebler-foods-for-3.86-billion.html
dbackjon
(6,578 posts)The reasoning for the sale is de-diversification
BumRushDaShow
(129,445 posts)Now they call it "going back to their core business".
And then they can also add these words in a larger report to further explain why -
George II
(67,782 posts)Bob Loblaw
(1,900 posts)nt
Submariner
(12,509 posts)Two major food groups taking a dive in the same year?
Thanks Obama.
BumRushDaShow
(129,445 posts)mahatmakanejeeves
(57,600 posts)I'll see if I can find that scene from "Repo Man."
Close enough:
BumRushDaShow
(129,445 posts)Haven't seen that movie in years.
Takket
(21,625 posts)you people are too damn fast LOL