Kellanova Plans Two Plant Closures

In a Securities and Exchange (SEC) report last week, Kellanova, which recently separated from Kellogg's, announced the closure of two plants.

Kellanova noted that the North America frozen supply chain network will be reorganized to drive increased productivity. The closure of a US frozen foods plant this year will result in production being shifted to other production facilities across the Americas frozen network.

In the SEC report, the snacks giant stated that the European cereal supply chain network is also proposed to be reorganized to drive efficiencies. The second plant closure in Manchester, UK likely will take place in 2026.  The plant employs 360 people and manufactures cereals including Corn Flakes and Rice Krispies.

Current employees that are laid off will receive severance and other termination benefits.

For the full year, Kellanova Europe's reported net sales increased by 8%, reflecting price/mix growth, momentum in snacks, and favorable foreign currency translation, which collectively more than offset the negative impacts of price elasticity and the divestiture of its business in Russia. This was in its Q4 2023 Earnings Report.

Its North American business reported an increase of 4%, as price/mix growth more than offset the impact of rising price elasticity and the lapping of prior-year trade inventory replenishment.

As well, Kellanova Latin America's reported net sales in the fourth quarter increased by 14% due to favorable foreign currency translation and price/mix growth.