Kellogg board approves snacks spinoff based in Chicago

Kellogg Co. said Monday its board of directors had approved the company’s plan to split in two: WK Kellogg Co., a cereals company, and Kellanova, a snacks company to be headquartered in Chicago.

Kellogg said it expects the split to become effective Oct. 2.

The company first announced spinoff plans in June 2022, when it said it would split into three companies. In February, Kellogg CEO Steve Cahillane said in an earnings call the company was reversing course on plans for one of the three planned companies, saying it would keep its plant-based foods business, MorningStar Farms.

Kellanova’s corporate headquarters in Chicago will be located at 412 N. Wells St., where Kellogg already has offices. The snacks company will also maintain a presence in Battle Creek, Michigan, where Kellogg is headquartered and where the cereals business will remain. Last year, Cahillane told the Tribune Kellanova employees would not be required to relocate to Chicago.

“After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners,” Cahillane said in a statement Monday.

Kellogg reported net sales of more than $15.3 billion last year, the majority of which came from its portfolio that will form Kellanova, including brands such as Pringles and Rice Krispies Treats.

Cahillane will serve as chief executive of Kellanova. Gary Pilnick will serve as the cereal company’s chief executive.