Kellogg (NYSE: K) is selling its Keebler, Famous Amos and fruit snacks businesses, making it the latest Big Food company to look to pare down to focus on its core.
The maker of Special K cereal said Monday it is focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company's revenue.
According to CEO Steve Callihane, "We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio. Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organization that can focus on driving growth in these particular categories."
The reorganization is part of Kellogg's previously announced cost-saving program Project K. Kellogg launched Project K in 2013 to save up to $475 million annually by 2018. As part of that program, Kellogg last year said it would switch from delivering directly to stores to delivering through warehouses.
Other brands up for sale include Murray and Mother's cookies and Stretch Island fruit snacks.
Other big food companies, which are struggling with slowing growth, are also paring down to be more nimble as they combat their smaller competitors like Kind Bar.
Shares of Kellogg closed down a little over 1% Monday, giving it a market capitalization of $22.3 billion. Year to date, its shares are down 5.4%. Those shares began Tuesday down 57 cents to $63.73
