US-based food manufacturer Kellogg Company is planning to sell its cookies business comprising Keebler, Famous Amos, Mother’s and Murray brands, as well as its fruit snacks business Stretch Island.
The move to divest its two businesses is part of the company’s strategy to invest in businesses with the highest growth opportunities.
Kellogg Company chairman and CEO Steve Cahillane said: “We need to make strategic choices about our business, and these brands have had difficulty competing for resources and investments within our portfolio.
“We wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organisation that can focus on driving growth in these particular categories.”
The company has not disclosed the financial details of the sale.
Kellogg’s North American (KNA) organisational structure will be redesigned from January to enable the company to advance in the marketplace and deliver top-line growth.
Primary changes to be incorporated by Kellogg in its KNA organisational structure include the consolidation of US morning foods, snacks and frozen foods business units into one categories-focused organisation comprising 80% of KNA revenue.
The creation of a single Kellogg US sales organisation aims to improve customer focus, as well as invest in e-commerce and integrated business planning capabilities.
Cahillane further added: “Kellogg Company’s Deploy for Growth Strategy, announced earlier this year, calls for the company to sharpen our focus and align our resources around our biggest opportunities to grow our top line and return to long-term sustainable growth.
“Ultimately, we believe these changes will make Kellogg more agile and better focused on growing demand for our foods.”
