BATTLE CREEK (WKZO AM/FM) — Kellogg says they are preparing to take the final step in their Project K reorganization program, and explore selling its cookie and fruit snacks unit. That includes brands like Keebler and Famous Amos among others.
“These brands have had difficulty competing for resources and investments within our portfolio,” said CEO Steve Cahillane in a statement. “These changes will make Kellogg more agile and better focused on growing demand for our foods.”
They are expected to release more details at a stockholders meeting today.(tue)
Apparently they have briefed the City of Battle Creek on the proposal telling City Manager Rebecca Fleury that the local impact would be about 60 jobs, worst case scenario.
Fleury says “It always is difficult to hear about the potential for job loss in our community, but we understand from the Kellogg Company that the expected impact locally would be minimal, from today’s announced changes. With the Kellogg’s North American structural changes, we may see a loss of 30 jobs in Battle Creek. If the company determines the sale of its cookies and fruit snacks lines are warranted, an additional 30 jobs may be lost from the Battle Creek headquarters.
The company said it would consolidate its U.S morning foods, snacks and frozen foods businesses into one unit, beginning next year. That’s everything from Corn Flakes to Pringles to frozen waffles.
Analysts say that Kellogg’s carb-centric” brands, its sugary cereals, cookies and snacks are no longer in step with a public that is becoming more health-conscious.
