BATTLE CREEK, Mich. -- The Kellogg Co. is looking to sell its Keebler, Famous Amos and Mother's and Murray cookie brands and Stretch Island fruit snack label to focus more on its core divisions.
"We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio," said Steve Cahillane, chairman and CEO of Kellogg. "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 company said it will also rebuild Kellogg's North American organizational structure to increase marketplace competitiveness and deliver top-line growth.
Both moves follow Kellogg’s Deploy Growth Strategy, a set of initiatives focused on growing sales and shares, margin expansion, total shareholder return, and culture and education.
"Kellogg Co.'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," said Cahillane. "Ultimately, we believe these changes will make Kellogg more agile and better focused on growing demand for our foods."
This rebuild merges Kellogg’s U.S. Morning Foods, Snacks and Frozen Foods sectors into a single business unit. Kellogg will also create a new supply chain and invest in e-commerce capabilities as part of the restructure.
Earlier this year, Kellogg named Chris Hood, former president of Kellogg Europe, president of Kellogg North America. In November, the company revealed it experienced a 9.3% increase in net sales during this year’s third quarter—driven by acquisitions and improved snacking consumption—bringing its net sales for the year to a 5.9% increase overall.
Battle Creek, Mich.-based Kellogg sells products in more than 180 countries. With nearly $13 billion in sales in 2017, it produces a variety of cereal, snack and convenience brands, including Keebler, Special K, Pringles, Kellogg's Frosted Flakes, Pop-Tarts, Kellogg's Corn Flakes, Rice Krispies, Cheez-It, Eggo, Mini-Wheats and more.
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