Kellogg's
Cereal pioneer split into Kellanova snacks (acquired by Mars $30B) and WK Kellogg Co narrowly focused on North American breakfast.
Kellogg's completed its split into two companies in October 2023: Kellanova inheriting global snacks including Pringles and Pop-Tarts with $12.7 billion 2024 revenue, and WK Kellogg Co retaining North American cereal franchises with $2.7 billion revenue. Mars acquired Kellanova for $30 billion in August 2024, completed December 2025, while WK Kellogg Co posted its first independent full-year results with 1.1% net sales decline in Q4 2024 offset by 6.6% EBITDA growth to $275 million through cost discipline.
The split represents organizational fission, separating fast-growing snack tissue from slow-growing cereal organs to maximize respective metabolic efficiency. Kellanova concentrated 60% on snacks with international cereal representing 20%, targeting consumers seeking convenient indulgence. WK Kellogg Co focused exclusively on breakfast occasions with legacy brands Frosted Flakes, Special K, and Froot Loops, defending market share in declining category through brand recognition and retail distribution advantages.
Like colonial organisms separating into independent polyps, each entity optimizes resource allocation for distinct environmental conditions. Kellanova's snack portfolio commanded premium valuation from Mars, validating the growth narrative. WK Kellogg Co battles volume decline through operational efficiency, increasing EBITDA margins while revenue contracts. CEO Gary Pilnick described the business as "highly integrated" after separating from Kellanova infrastructure by mid-2025, establishing autonomous supply chains and administrative functions. The fission strategy assumes specialized organisms outcompete generalists in their respective niches, that Mars can accelerate Kellanova's global snack growth while WK Kellogg defends cereal profitability without cross-subsidizing unrelated businesses.