Kellogg (K) will have cooked up a new look by the end of the year as it executes a valuation-boosting initiative for its investor base.
The cereal and snacks giant revealed this week the new names of its two businesses once it completes a planned breakup later this year: Kellanova and WK Kellogg Co.
"It was a daunting task when you think about renaming a 117-year-old iconic household name company," Kellogg CEO Steve Cahillane told Yahoo Finance Live (video above). Cahillane added consumers will still see the Kellogg's brand name on Corn Flakes and other brands.
Kellanova will house well-known snack brands such as Pringles, Cheez-It, and Pop-Tarts as well as its plant-based food business Morningstar.
The Kellanova business, which will be run by Cahillane, is slated to trade under Kellogg's current stock ticker symbol "K" on the New York Stock Exchange. Kellogg says the Kellanova name is meant to tie back to the heritage of the 117-year-old company while also signaling a new era of growth.
The traditional cereal business, which boasts names such as Froot Loops and Corn Flakes, will be called WK Kellogg Co — a nod to the company's founder William Keith Kellogg. The business's stock symbol and exchange information will be released in coming months.
Cahillane originally announced the breakup of the food titan into three stand-alone businesses — cereal, snacking, and plant-based foods — in June 2022. Last month, the company decided to retain the plant-based food business amid challenging demand conditions for the industry that have tripped up leaders Beyond Meat (BYND) and Impossible Foods.
At the time of the announcement, Cahillane told Yahoo Finance Live the breakup reflected his view that the market wasn't properly valuing Kellogg's fast-growing snacks business and efforts to streamline costs.
Cahillane still thinks that some nine months into unwinding the businesses, saying better "focus" will serve the businesses well.