Kellogg is considering selling off its cookie and fruit snack brands, such as Keebler and Famous Amos, to concentrate on its core products, company leadership said this week.
CEO Steve Cahillane said that cookies and fruit snacks “have had difficulty competing for resources and investments within our portfolio” and that the company would be better off paying more attention to core categories. These include breakfast cereals, frozen products like Eggo waffles, and savory snacks like Cheez-It crackers. Kellogg plans to consolidate these products into a single division, combining retail sales teams and streamlining the supply chain. This plan would lead to about 30 layoffs at company headquarters in Battle Creek, Mich.
Wall Street did not take well to the news, with Kellogg stock dropping 2% in the wake of the announcement. It has fallen about 9% since the beginning of the year. Kellogg is joining other big food processors, like Kraft Heinz and Campbell Soup, that have sold marginal brands or announced plans to do so.