Food manufacturing giant Kellogg Co. is spinning off its snacks division as a separate company and moving the headquarters of that business to Chicago as it eyes higher growth and international expansion of its portfolio of iconic brands.
The new company, Global Snacking Co., racked up $11.4 billion in sales last year, accounting for about 80% of Kellogg’s overall revenue. The move comes as a part of a broader transformation by Kellogg’s, which also spun out its North America cereals business and a smaller plant-based foods division.
Global Snacking includes brands such as Pringles, Cheez-It, Pop-Tarts, and Kellogg’s Rice Krispies Treats. The new company will also handle international sales of cereals like Frosties, Special K, Coco-Pops and others. Kellogg already employs more than 300 people in the Chicago area and the new HQ will be located in Kellogg’s existing Chicago office.
“This business is expected to be a higher-growth company than today’s Kellogg Company, featuring a more growth-oriented portfolio and aided by more focused resources and attention to brand building, innovation, and international expansion of world-class brands, and to building scale in emerging markets,” the company said in a statement.
Illinois has long been a center of food production and innovation. Other major agribusiness firms that call the state home include Archer Daniels Midland, Mondelez International, Treehouse Foods, and Conagra Brands.
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