Kellogg’s announces split into Kellanova and WK Kellogg Co. by end of 2023

The Yahoo Finance Live team discusses Kellogg's plans to split into two companies.

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- Kellogg has a new name for its future companies it will create by splitting its global snacks unit-- that's one, and the other one is the North American cereal unit-- into independent companies. And so Kellanova will be the name which will include global snacking, international cereals, and plant-based foods with brands like Pringles, Cheez-It, Pop-Tarts, Rice Krispie Treats. And WK Kellogg is the name of the second company, a nod to Kellogg Founder William Keith. That's its North American cereal business which includes brands like Frosted Flakes, Fruit Loops, Raisin Bran.

And the Kellogg's brand will stay on product packaging of both companies. The spinoff of the snacking entity and the cereal company, that will take place by the end of 2023.

The reason why they're doing this really is for cost saving and because the margins on cereals is so much less. Snacks is really the growing sales, and that is the big business. But it's interesting that they came up with these names. Kellanova, nova means new. And they came up with these names through employee surveys. I mean, the employees were the ones--

SEANA SMITH: Yeah, which I thought was so cool. Kellanova, I'm a big fan of that name. It makes a lot of sense.

- I wasn't initially this morning.

SEANA SMITH: Really?

- I think I'm coming around--

- And now?

- --to it.

SEANA SMITH: OK.

- It will be popular shirts on Villanova's campus probably, right?

- Yes.

SEANA SMITH: There we go.

- Reminds me of--

- It's a funny spin there. I think part of Pennsylvania will like it. I don't know. It'll be interesting to see if it sort of--

SEANA SMITH: Maybe that's why--

- --catches on.

SEANA SMITH: Maybe I was so quick to like it just given my Pennsylvania roots, related it to Villanova. I don't know. But I think it all makes a heck of a lot of sense.