Local Kellogg expansion moves ahead as company announces split
A plan to add a large warehouse space for the Kellogg plant expansion on Old Lindale Road took another step forward as the company as a whole announced its split into three independent companies.
Locally, the Rome-Floyd County Development Authority board approved a letter of intent to sell 32.63 acres off Old Lindale Road to Kellogg for $326,300.
The company intends to build a 125,000-square-foot warehouse facility just behind the plant. Other businesses in the area of the Floyd County Industrial Park, like Summit Hill Foods and Kerry, have completed expansions recently.
On Tuesday, Kellogg Co. announced that it will split into three independent companies.
The split reflects Kellogg’s expansion beyond its roots as a well-known maker of breakfast cereals. The split is in recognition of a pandemic-driven market which showed heavier demand for packaged snack foods and plant-based foods.
Kellogg expects to separate the cereal unit first, with both transactions completed by the end of 2023.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Chief Executive Officer Steve Cahillane said in a statement.
The Rome plant makes packaged snacks.
The three companies haven’t yet been officially named, Bloomberg reported, and the managers of the cereal and plant-based-foods units will be announced at a later date, Kellogg said.
The cereal and plant-based companies will remain based in Battle Creek, Michigan while the snack unit will have corporate headquarters in Chicago, Illinois.