Photo: Kellogg Co. BATTLE CREEK, MICH. — There has been a slight change of plans in the Kellogg Co.’s breakup scheme. The company is keeping its plant-based meat alternative business Morningstar Farms rather than spin it off or sell it. Timing, as they say, is everything and the slump overshadowing the entire meat alternative category played a role. “When we began this process, valuation for peer companies were stratospheric compared to where they are today,” said Steven A. Cahillane, chairman, president and chief executive officer, during a Feb. 9 conference call to discuss fiscal 2022 results. “They’ve come down quite substantially. So, the thesis when we started the process was to truly unlock shareholder value. If we could attract the same types of multiples in the public market, we should pursue that. The environment has clearly changed.” Looking to the future of the category, Mr. Cahillane added that Kellogg sees an “imminent shakeout coming.” “It’s happening already,” he said. “And there’ll be a couple of players left standing, and Morningstar Farms still has some of the highest household penetration, highest name recognition, fantastic foods, strong in the freezer space where the consumer is migrating back to, and profitable, unlike […]
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