Kellogg Co. has announced that it is redesigning the company’s organizational structure in North America. The company says it will consolidate its US Morning Foods, snacks and frozen foods business into a single “category-focused” organization that accounts for 80 per cent of North American revenue. The morning foods, snacks, and frozen and retail channels sales teams will also be consolidated into a single US sales organization. And Kellogg plans to build a consolidated, end-to-end North American supply chain including procurement, manufacturing, logistics, and customer service to increase scale, enhance capabilities and ensure delivery of growth goals.
The restructuring is one of the final elements in the company’s “Project K” restructuring program.
In another major change, Kellogg is exploring the sale of its cookies and fruit snacks businesses to “bring a sharper focus to its core businesses.” The cookies business includes the Keebler, Famous Amos, Mother's and Murray brands, and the fruit snacks business includes Stretch Island.
"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," said Steve Cahillane, chairman and CEO, Kellogg Company. "Ultimately, we believe these changes will make Kellogg more agile and better focused on growing demand for our foods."
The company is also investing in new e-commerce and integrated business planning capabilities.