'We are supporting them': Battle Creek city leaders pledge to work with Kellogg as it transforms

Battle Creek city leaders say they support Kellogg Co.'s plan to split into three separate entities, and will work with the company to address its needs while also pursuing other economic development opportunities.

Kellogg Tuesday announced the corporate headquarters for its largest entity, focused on snack foods, will move to Chicago while its North American cereal and plant-based foods businesses will remain based in Battle Creek.

"(Kellogg executives) have committed to being open and transparent to us as a community and we are believing in them and we are supporting them in this," Battle Creek City Manager Rebecca Fleury said during a press conference Wednesday outside City Hall. "Whatever they can do to position themselves for growth, we want them to do. We will do whatever we can to also be their partner in Battle Creek and in other areas."

The snack business, which accounts for about 80% of Kellogg sales and includes products such as Cheez-Its, Pringles, Eggo Waffles and international cereals, will maintain a campus in Battle Creek, the company said; no employees will be asked to relocate and no offices are expected to move or be closed.

Meeting with stakeholders provides comfort

City stakeholders met with Kellogg executives Wednesday morning to discuss the upcoming steps in the company's transformation.

"I felt a little more confidence, I have to be honest with you, walking away from the meeting," Battle Creek Mayor Mark Behnke said. "We met with (CEO) Steve (Cahillane) when he first was hired four years ago and he told Rebecca and I, 'Hey, I have to get my hand around this global supply chain.' I think he’s done that now and I think they’re making some wise decisions to increase the value of their stock and their company. I think it’s good."

Kellogg had net sales of $14.2 billion in 2021, with $11.4 billion generated by its its snack division. North American cereal, which includes Frosted Flakes, accounted for another $2.4 billion in sales last year while plant-based sales, led by the MorningStar Farms brand, totaled about $340 million.

"I think you'll recognize this news as Kellogg Company taking yet another bold, decisive move to create shareowner value," Cahillane said during a conference call Tuesday announcing the changes.

Fleury echoed Cahillane Wednesday, explaining, that to her understanding, the split "is all about putting each one of those (companies) in a position to compete and grow, and that’s what we want for them."

Moving forward, Fleury said the city will continue to partner will Kellogg to address its needs.

"What we’re going to do is what we’re already doing — we’re making sure we have a talent pool for (Kellogg) to draw from, we’re making sure that we have a variety of housing options," she said.

Battle Creek is more than Kellogg

Fleury also joined Battle Creek Unlimited President/CEO Joe Sobieralski in touting the city's recent economic development projects, including ongoing renovations to convert the former McCamly Plaza Hotel into a DoubleTree by Hilton and the revitalization of the old Heritage Tower into The Milton, featuring 85 apartments.

Sobieralski also pointed to Fort Custer Industrial Park, which houses more than 85 companies and provides roughly 13,000 jobs in the community.

"We are known for cereal, but there is so much more going on," Sobieralski said. "We are going to honor our history, our legacy here, but we’re also not going to rest on our laurels and we’re going to continue to do economic development and diversify into future industries. I think that’s not a Battle Creek issue, that’s not a Michigan issue … Every community should be always continuing to look and invest for the next industries."

Kellogg's transition is expected to be complete by the end of 2023. Permanent names for the three companies will be determined at a later date, officials said. Tuesday, they were described as Global Snacking Co., North America Cereal Co. and Plant Co.

Kellogg said new few positions will be added as a result of the changes, acknowledging the North American cereal company and plant-based foods company will need to hire CEOs, among other leadership positions. Cahillane will become chairman and CEO of the global snacking company.

Contact reporter Greyson Steele at gsteele@battlecreekenquirer.com or 269-501-5661. Follow him on Twitter: G_SteeleBC

This article originally appeared on Battle Creek Enquirer: Battle Creek city leaders offer support as Kellogg transitions