(Tony Sifert, Headline USA) The parent company of the famous Kellog’s cereal brand, ranked 258 on the Fortune 500, has announced a plan to separate into three companies, according to a Kellogg Company press release.
The company will branch into three as-yet-unnamed companies, which will focus on “global snacking,” North American cereal, and plant-based foods, respectively.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” CEO Steve Callihane said in the release.
“These businesses all have significant standalone potential, and . . . each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”
“The spinoffs come as Kellogg, like other food companies, grapples with inflation and ongoing supply-chain snarls,” the WSJ reported. “The company’s operations were also disrupted last year by a strike by factory workers and a fire at a plant that temporarily knocked out production.”
Some have speculated, however, that the breakup of the company has to do with the enormous losses that Kellogg has faced in the last several years, due in large part to its pioneering efforts in the realm of “woke capital.”
The W.K. Kellogg Foundation, with an endowment of $7.3 billion, has for years distributed hundreds of millions of dollars worth of grants to left-wing causes like Black Lives Matter, the American Civil Liberties Union, and George Soros‘ Open Society Institute, according to a 2017 investigative report published by the Capital Research Center.
“[What happens when] a super-woke company founders and its profits decline?” wrote Mike Miller at RedState. “Less money for radical left-wing causes.”