Major changes are afoot at Kellogg’s, with the brand splitting into two separate entities under the names WK Kellogg Co and Kellanova.
The changes at the breakfast giant, which moved into its current UK HQ at Mediacity from its previous Old Trafford home in 2018, follow the spin-off of the North American cereal business from the overall company earlier in the year. The two distinct identities, one of which “pays tribute to the company’s heritage while the other is forward-facing, reflect their different approach to brand building.”
Brands including Pringles, Pop-Tarts and Nutri-Grain will now sit under the Kellanova banner, as will international cereal brands including Frosties, Special K and Coco Pops, among others.
Meanwhile, WK Kellogg Co will operate in the US, Canada and the Caribbean, handling cereal brands including Frosted Flakes, Special K, Raisin Bran, Rice Krispies and Corn Flakes in those markets.
Consumers will continue to see Kellogg’s branding on product packaging around the world – but it will now be shared by both WK Kellogg Co and Kellanova, which will operate as two independent companies.
Paul Wheeler, Kellog’s cororate affairs senior leader in Manchester posted on LinkedIn: “A family member asked me ‘I guess that means saying goodbye to Kellogg’s? No! This is definitely an AND moment – Kellogg’s is proudly staying on our cereal packs and it’s about building on all the great things we’ve already done.”
Steve Cahillane, now chairman and CEO of Kellanova, said: “Upon spin completion, we believe both businesses will be better positioned to focus on their distinct strategic priorities, execute with increased agility and operational flexibility, realise improved outlooks for profitable growth, and shape distinctive corporate cultures, each rooted in Kellogg Company’s strong values.”
The split was approved by Kellogg Company’s board of directors last month and officially announced on October 2. WK Kellogg Co uses the same script as the traditional Kellogg’s logo, a replica of the company’s founder’s signature, while Kellanova retains the same font only in the ‘K’ of its branding. The company explained that the word is a of ‘Kellogg’s,’ which “recognises our enduring connection to Kellogg Company” and ‘anova’ meaning ‘new.’
To introduce the new branding to the world, Kellanova took over took over more than 100 screensyesterday including at the New York Stock Exchange and its Battle Creek, Michigan hometown.
The markets, no doubt along with many customers, may take a little time to adjust to the new names. Kellanova shares fell as low as $51.83, down 7.2% yesterday following the spin off, after opening at $55.70, while WK Kellogg Co dropped by more than 15%, eventually closing at $11.24.
Under the terms of the split, Kellanova shareholders received one share of WK Kellogg Co common stock for every four shares of Kellanova stock held as of September 21. Both companies are listed on the New York Stock Exchange and are trading for the first time under their new corporate names.
