Kellogg Company Splits Business: Introducing Kellanova
Introduction
Kellogg Company, a household name in the food industry, has recently undergone a significant transformation. The company has split into two separate entities, WK Kellogg Co and Kellanova. This strategic move aims to create distinct brand identities and enable each entity to focus on their unique strategic priorities. In this article, we will delve into the details of this split, explore the brands under each entity, and understand the implications of this decision.
The Split: WK Kellogg Co and Kellanova
The split of Kellogg Company resulted in the formation of two separate entities: WK Kellogg Co and Kellanova. While WK Kellogg Co operates in the US, Canada, and the Caribbean, Kellanova takes on the responsibility of managing the international cereal brands and other iconic brands. Let’s take a closer look at each entity and the brands they now oversee.
WK Kellogg Co
WK Kellogg Co primarily focuses on the North American market. Under this entity, several well-loved cereal brands are housed, including Frosted Flakes, Special K, Raisin Bran, Rice Krispies, and Corn Flakes. Despite the split, consumers will continue to see the Kellogg’s branding on product packaging in the US, Canada, and the Caribbean.
Kellanova
Kellanova, on the other hand, takes on a more global role. It is responsible for stewarding a range of international cereal brands such as Frosties, Special K, and Coco Pops, alongside other iconic brands like Pringles, Pop-Tarts, and Nutri-Grain. Kellanova has a significantly larger equity compared to WK Kellogg Co, with estimated annual net sales of £10.28bn.
The Branding Approach
With the split, both WK Kellogg Co and Kellanova have adopted distinct branding approaches that reflect their individual identities. Let’s explore the branding strategies of each entity.
WK Kellogg Co’s Branding
WK Kellogg Co’s branding pays homage to the company’s heritage. The logo features a script font that replicates the signature of the company’s founder. This choice connects the entity to its rich history and reinforces its commitment to upholding the values instilled by the founder.
Kellanova’s Branding
Kellanova takes a forward-facing approach with its branding. The portmanteau of ‘Kell’ and ‘anova’ forms the entity’s name. ‘Kell’ acknowledges the enduring connection to Kellogg Company, while ‘anova’ represents the concept of something new. The logo incorporates a curved ‘v’ that arcs forward, symbolizing progress and innovation.
The Rationale Behind the Split
The decision to split Kellogg Company into two entities was driven by several key factors. Let’s explore the rationale behind this strategic move.
Enhanced Focus on Strategic Priorities
By separating into two entities, WK Kellogg Co and Kellanova can sharpen their focus on their respective strategic priorities. This division allows each entity to dedicate their resources, time, and efforts to areas that are most critical for their growth and success.
Increased Agility and Operational Flexibility
With the split, both WK Kellogg Co and Kellanova can operate with increased agility and operational flexibility. This newfound independence enables them to make decisions swiftly, adapt to market dynamics, and seize new opportunities more effectively.
Improved Outlooks for Profitable Growth
The split is expected to result in improved outlooks for profitable growth for both entities. By streamlining their operations and aligning their strategies more closely with their target markets, WK Kellogg Co and Kellanova can capitalize on market trends, innovate their product offerings, and drive sustainable growth.
Distinctive Corporate Cultures
The split also allows WK Kellogg Co and Kellanova to shape distinct corporate cultures. Each entity can develop a culture that aligns with its strategic vision, values, and goals. This fosters a sense of identity and purpose within the organization, which can positively impact employee morale and overall performance.
The Future of Kellogg’s Brands
Despite the split, the Kellogg’s brand remains intact and continues to be a familiar sight on product packaging worldwide. Both WK Kellogg Co and Kellanova will share the Kellogg’s branding, signifying their connection to the company’s legacy and reputation for quality.
Conclusion
The split of Kellogg Company into WK Kellogg Co and Kellanova marks a significant milestone in the company’s history. This strategic move allows each entity to focus on their distinct strategic priorities, operate with increased agility, and shape distinctive corporate cultures. As WK Kellogg Co and Kellanova embark on their respective journeys, consumers can expect to continue enjoying their favorite Kellogg’s brands, now under the stewardship of these two independent entities.
