Kellogg’s, the food giant behind household brands such as Coco Pops, Crunchy Nut, and Sultana Bran, has rebranded as Kellanova.
Before you spit out your coffee, it is important to note that right now consumers are largely unaffected by the change – all of the cereals mentioned above will retain their iconic Kellogg’s stamp.
The decision to split the $31.3 billion giant into two companies is largely a strategic move led by the company’s US headquarters, as it seeks to capitalise on the huge growth of the global snack sector.
As reported by The Sydney Morning Herald, WK Kellogg Co – its North American company – will continue to focus on its core cereal portfolio whilst, Kellanova will become a “global snacking powerhouse” including brands such as LCMs, K-Time bars, Pop Tarts, and more.
The impact of the rebranding will be felt in the future for consumers, Kellanova managing director Anthony Holme told The Sydney Morning Herald.
“It means very little to Australian consumers in terms of change right now,” he said. “It means much more choice for Australian consumers in the future as we bring the global snacking opportunities and local snacking opportunities into Australia.”
Holme said the Kellanova business would focus more on product innovation and convenience.
“Many more people are eating on the go,” he said. “People are moving through the day faster. They don’t necessarily want the same format of food … and we need to answer to that.”
Kellogg’s reportedly declined to provide growth or revenue figures but said that Kellanova had “high double-digit growth” this year, while WK Kellogg Co had “high single-digit growth”.
Kellanova is the larger of the two businesses with net sales projected of around $US13.5 billion ($21 billion) in 2024, compared with $US2.33 billion projected for WK Kellogg Co.
“International markets have a very different need to the US, for example, and cereal in the US – I’m not an expert in that – it’s a very different business to snacks,” Holme said.
“It allows ruthless focus from a strategy point of view, as opposed to divergent focus.”
“Impulse occasions are very different to formal sit-down meal occasions, and the way that you take it to market, whilst appears the same, creates a much more entrepreneurial and much more focused growth mindset,” Holme said.
Kellanova could also introduce international brands such as Cheez-Its, Rice Krispie treats, RXBAR, Eggo, and plant-based brands Incogmeato and Gardenburger into Australia.
