Kellogg Co. (NYSE: K) has been one of the quick ready-to-eat cereal companies competing against the likes of General Mills Inc. (NYSE: GIS) and other breakfast brands since its establishment in 1906. Although General Mills leads in cereal sales as the vendor of cereals such as Cheerios, Lucky Charms, etc., Kellogg leads in breakfast, cereal and snack bars sales as the vendor of Frosted Flakes, Froot Loops, Rice Krispies and a customer-favorite, Kellogg’s Pop Tarts.
The Company has provided employment for over 33,000 employees since 2017 and is looking to divest some of its North American businesses. It has previously unloaded fruit and fruit-flavored snacks, pie crusts, ice-cream cones and cookies businesses to Ferro International S.A., the parent company of snack brands such as Ferrero Rocher, Nutella, etc. and is expected to be completed by July.
The Company plans to reorganize and finish removing the remainder of its North American businesses by the end of 2020. According to its Securities and Exchange Commission filing, the Company will take a USD 35 Million pre-tax charge in order to do so. The total consists of USD 20 Million employee-related charges including severance and other termination benefits as well as USD 15 Million that consists of third-partying consulting fees. In other news, the company stock has dropped 1.38% to USD 55.77 after previously rising 0.7% to USD 56.92.