Snap AND Crackle AND Pop

In June, Forbes, CNN & others reported on the Kellogg will split into 3 firms:

1. Plant-based food production/tech; 2. a Snack firm; and 3. a Cereal firm.

While some pundits & promoters may be keen to call this ‘visionary’, one might remind stockwatchers the business world, like any other, is subject to ‘fad & fashion’ cycles.

Samsung, 3M, Berkshire, J&J, Hitachi, Nestle, Mitsubishi, Siemens & (pre-Welch) GE: huge diverse firms-ie conglomerates- that succeeded.

Splitting up companies is now ‘in vogue’ –but read up, study up, find facts not just fashion imo since Plant-based manufacturing has relevance beyond a few food categories (Cereals & Snacks), I get that move. Cereals & Snacks, although in separate grocery & convenience store & mass merch aisles, DO share sales channels, however, imo the Cereal-Snack split is less compelling.

Consider the #Brand management complications: Sharing brands? If the Cereal firm aims to use a brand to convey ‘health/wholesome’ but the Snack firm wants to portray it as ‘indulgent/decadent/irreverent’?

Good luck. This is more complicated -and maybe more problematic – than pretty press releases about ‘splitting up the biz to release the untapped value‘ may indicate.

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