TL;DR
Kellogg’s snack business, Kellanova, is set to have impressive sales and profit figures as it separates from the company. Brands like Pringles, Cheez-It, and Pop-Tarts will be part of this division, making it an excellent chance for small retailers to stock up on these popular snacks.
Kellogg, the well-known packaged food maker, is making exciting moves in its snack business. The company’s snacking arm, known as Kellanova, is projected to achieve substantial sales growth, ranging between $13.4 billion and $13.6 billion for the full year. This significant growth is expected after Kellogg splits into two separate units by the end of this year.
Kellanova, the new home for favorite snack brands like Pringles, Cheez-It, and Pop-Tarts, is not only witnessing impressive sales but also anticipates a strong adjusted profit per share, ranging from $3.55 to $3.65. This positive outlook for the snack division offers a valuable opportunity for small and independent retailers.
Kellogg’s decision to divide the company was made to enhance its focus on the snack business. As the snack brands gain their dedicated space under Kellanova, they are poised to make an even more significant impact on the market. This presents a practical application for independent retailers who can consider stocking up on these well-loved snack items to cater to the growing demand.
In contrast, the cereal business, named WK Kellogg, will be responsible for brands like Kellogg’s and Froot Loops. It is projected to achieve full-year net sales of $2.7 billion, highlighting the strength of Kellogg’s brands across different product categories.
The recent announcement by Kellogg also brings good news for the company’s financial performance. With multiple price hikes for its breakfast snacks and cereals, Kellogg has forecasted a smaller decline in annual profit than previously expected.
This data points to a thriving future for Kellogg’s snack brands, especially those falling under the Kellanova division. For small retailers, this growth translates into a significant opportunity to meet consumer demand by ensuring that popular snack brands like Pringles, Cheez-It, and Pop-Tarts are well-stocked on their shelves.
