The Kellanova story is such a perfct example of how spin offs can unlock hidden value. What's wild to me is how quikly Mars moved once Kellogg's separated the businesses. Like you said, they weren't buying cereal, they were buying a confectionery companey that happened to sell Pringles. The split let Mars avoid the cereal baggage and focus purely on snacks. I think the Kraft Heinz board is hoping for the same outcome, but I'm skeptical because their brands don't have the same clear category positioning that Kellanova had.
So true. The āconglomerate taxā is what Iāve heard used elsewhere of groups whose companies no longer have any cohesion or material shared cost structure, that then get valued by their weakest, ageing link. I think even broken up Kraft-Heinz will struggle to find that cohesion. The Heinz brand itself could probably be sold off for more than the group.
The Kellanova story is such a perfct example of how spin offs can unlock hidden value. What's wild to me is how quikly Mars moved once Kellogg's separated the businesses. Like you said, they weren't buying cereal, they were buying a confectionery companey that happened to sell Pringles. The split let Mars avoid the cereal baggage and focus purely on snacks. I think the Kraft Heinz board is hoping for the same outcome, but I'm skeptical because their brands don't have the same clear category positioning that Kellanova had.
So true. The āconglomerate taxā is what Iāve heard used elsewhere of groups whose companies no longer have any cohesion or material shared cost structure, that then get valued by their weakest, ageing link. I think even broken up Kraft-Heinz will struggle to find that cohesion. The Heinz brand itself could probably be sold off for more than the group.