http://www.breitbart.com/economy/2022/06/21/breitbart-business-digest-kelloggs-is-dying-of-wokeness/
By John Carney
Breitbart
June 21, 2022
The Kellogg Company announced today that it was breaking itself up into three companies: a cereal business, a plant-based food business, and a snack business.
It’s hard to think of a starker admission of corporate failure. The company’s shares basically sat out the great bull market that ended recently. Shares peaked in April of 2016 just short of $82 and never came close again. Shares mostly traded below $70 over the next six years, sometimes much lower. At their trough in 2019, you could pick them up for less than $54 apiece.
The company now says that its basic structure is unworkable. The growing snack business is, somehow, being weighed down by the stable, mature, and boring cereal business. There’s also the plant-based food business that does not seem to fit into either snacks or cereals. Certainly, the structure has been unable to produce returns for shareholders. Now management hopes that the parts might be worth more than the sum. Naturally, the chief executive is going with the growing snack business rather than staying with the cereal business that management helped destroy.
Kellogg did real damage to its brands—cereals such as Special K, Kellogg’s Raisin Bran, Frosted Flakes, Froot Loops, Rice Krispies, and Frosted Mini Wheats—when it decided to take sides in American politics by boycotting Breitbart. The company had long been suspected of basically being controlled by the the W.K. Kellogg Foundation, the far-left social justice operation that is its largest shareholder. Declaring that Breitbart—and by extension the entirety of center-right politics in American—did not conform to its values sealed this impression. Suddenly, Snap, Crackle, and Pop and Tony the Tiger were the self-declared opponents of ordinary Americans who preferred, say, Donald Trump to Hillary Clinton.
“Every time an American family picks up a box of Kellogg’s cereal at the grocery store, it is contributing to the wealthy radical leftwing foundation that agitates for open borders, supports George Soros’s Open Society Institute, and pushes a host of leftwing causes,” we wrote back in 2017.
Now that company is on its deathbed, its business model declared by its managers as untenable. Perhaps the emergent smaller descendants will be a bit less eager to act as aggressors in the culture wars.
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