Almost a year ago, we published a case study looking at the corporate break-up of the venerable Kellogg Company into two separate businesses: Kellanova (snack foods) and WK Kellogg (breakfast cereals).

• Our post last year was prompted by the August 2024 announcement that Mars, Inc. would be acquiring Kellanova.
• This past week, the Kellogg saga reached its denouement with the announced sale of WK Kellogg to European packaged food company Ferrero.

From the announcement through the present, Kellogg shareholders have earned an annualized total return of 11.2%, far outpacing the returns of peer publicly traded packaged foods companies.  Last year’s post included five takeaways for family business directors.  In this week’s post, we reiterate those original takeaways and add a sixth:

• Shareholders benefit from realism. It has been no secret that breakfast cereal is a category in decline among consumers.  Credit goes to the managers and directors of The Kellogg Company for recognizing the futility of bucking this trend.  Rather than trying to ride out the decline as a standalone company, directors positioned the business for an optimal sale.

Click here to download the updated case study.  The Kellogg story offers family business directors and managers plenty of food for thought.  Give one of our senior professionals a call today to discuss potential strategies for unlocking the value in your family business.

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