👉 Background: The Kellogg Company - aka Kellogg’s - was founded back in 1906 under its original name, Battle Creek Toasted Corn Flake Company. It's since gone on to become a US$23 billion company.

👉 What happened: Kellogg's sells fan fave cereals like Coco Pops, Corn Flakes and Froot Loops. It also sells plant-based protein foods and yummy snacks like LCMs.

👉 What else: Now, Kellogg's is planning to spin off each of these branches (cereals, plant-based proteins and snacks) into separate publicly traded companies by the end of 2023.

What's the key learning?

💡A spinoff is where a company creates a new company (or companies) by selling new shares of an existing business division. Companies create spinoff businesses if they reckon that the new business would be worth more as a separate entity.

💡Spinoffs get a whole new management structure, potentially a new name and a new listing, but they generally have the same assets. The parent company also generally continues to provide financial support.

💡Spinoffs are becoming more and more popular. In fact, last year more than 200 public companies announced spinoffs. So while chunky conglomerates were the 'in thing' back in the 20th century, now it's out with the old and in with the spinoff.

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