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November 13, 2018

2 Min Read
Kellogg Co. Mulls Sale of Cookies and Fruit Snacks Units
Kellogg's cookie and fruit snacks businesses, including the Keebler brand, may be sold to another company soon. Image courtesy of Flickr user jeepersmedia

As part of an effort to reorganize its North American business, the Kellogg Company revealed Monday that the company is considering a divestment from its cookies and fruit snacks businesses, which include the brands Famous Amos, Keebler, and Stretch Island. 

“We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio,” said Kellogg’s chairman and chief executive officer, Pete Cahillane, in a press release. “Yet, we wholeheartedly believe these iconic and beloved brands can thrive in a portfolio of another organization that can focus on driving growth in these particular categories.”

The company said the financial impacts of the sale of its cookies and fruit snacks assets will be discussed when a transaction is announced. 

Beyond the potential sale of the businesses, Kellogg Company also plans to consolidate its U.S. Morning Foods, Snacks, and Frozen Foods businesses a single organization that will focus on categories. The company is also seeking to put together a consolidated, end-to-end supply chain in North America for procurement, manufacturing, logistics, and customer service activities to increase scale and improve capabilities. Investments will also be made in eCommerce and Integrated Business Planning capabilities.

“Kellogg Company’s Deploy for Growth Strategy, announced earlier this year, calls for the company to sharpen our focus and align our resources around our biggest opportunities to grow our top line and return to long-term sustainable growth,” Cahillane said. “Ultimately, we believe these changes will make Kellogg more agile and better focused on growing demand for our foods.”

The restructuring effort is slated to start in January 2019.

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