Battle Creek will nonetheless be the Cereal Metropolis.
Simply not the Snacks Metropolis.
A day after the Kellogg Co.’s shock announcement that it plans to separate subsequent 12 months into three separate corporations, with the biggest, snacks-focused firm formally headquartered in Chicago, Battle Creek officers mentioned Wednesday that they do not foresee the event as an financial disaster for his or her metropolis of greater than 52,000 individuals.
Throughout a information convention exterior Metropolis Corridor, Metropolis Supervisor Rebecca Fleury mentioned they had been not too long ago instructed by Kellogg’s CEO Steve Cahillane that there are not any plans to relocate Kellogg’s staff in Battle Creek or cut back its native workforce headcount as a part of the corporate break up.
Battle Creek will keep headquarters for the cereals-focused firm and its world-famous manufacturers corresponding to Frosted Flakes and Froot Loops, and in addition be headquarters for the plant-based firm with its MorningStar Farms model.
The longer term snacks-based firm, which can have Pringles, Pop-Tarts and Cheez-Its, at the moment makes up about 80% of Kellogg’s gross sales. That firm can have its headquarters in Chicago, but nonetheless have a Battle Creek campus.
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“He acknowledged there are not any jobs shifting,” Fleury mentioned, recounting her dialog with the Kellogg’s chief govt. “Their footprints are nonetheless the identical: WKKI, the headquarters, the manufacturing plant.”
(WKKI is an acronym for the W.Ok. Kellogg Institute for Meals and Vitamin Analysis, the corporate’s analysis and improvement heart.)
Kellogg was began in Battle Creek in 1906 and stays the town’s second-largest employer, with 2,000 staff as of final fall, in keeping with the town.
Kellogg as soon as employed many extra in Battle Creek, however has lowered its headcount by means of the years, together with from the 1999 shuttering of a cereal plant that noticed many roles go to Mexico.
The most important Battle Creek employer is Denso Manufacturing Michigan. Put up Client Manufacturers, which additionally makes breakfast cereals, employed 571 staff in Battle Creek as of 2021.
“For me personally, listening to Mr. Cahillane speak this morning, he felt that this was the perfect place that he may transfer the Kellogg firm in,” Fleury mentioned of Kellogg’s three-way break up. “And he mentioned to us this morning he feels that this might be within the spirit of what Mr. Kellogg would do, figuring out the financial system that we have now right this moment, and the way every a kind of three markets is working.”
Fleury mentioned the town has but to find out the potential affect on its tax revenues from the break up. Battle Creek levies a 1% company revenue tax and a 1% revenue tax on residents and 0.5% on nonresidents.
The town didn’t study of Kellogg’s plans to separate the corporate till information media experiences on Tuesday morning, Fleury mentioned.
As a result of Kellogg is a publicly traded firm, tipping off native officers to such large information, even when meant as a easy courtesy, may run afoul of securities legal guidelines.
The town supervisor famous how some early information experiences of the corporate break up contained inaccurate data — later corrected — that Kellogg deliberate to open a Chicago headquarters for extra than simply the snacks-based firm.
“We noticed the headlines, too: ‘Kellogg’s shifting headquarters from Battle Creek to Chicago,’ however that isn’t true,” she mentioned.
Kellogg says it at the moment has greater than 300 staff in the Chicago space, and that new hires for the snacks-based firm will probably be recruited for each the Chicago and Battle Creek areas, in addition to remote-work positions.
The corporate has but to announce the official names for the three corporations. Fleury mentioned she has a hunch that the “Kellogg” identify won’t be disappearing.
“Everyone knows that Kellogg’s is a globally identified identify,” she mentioned. “He (Cahillane) acknowledged that and he acknowledged it, and we’ll see what occurs.”
ContactJC Reindl: 313-378-5460 or firstname.lastname@example.org. Comply with him on Twitter @jcreindl. Learn extra on enterprise and join our enterprise e-newsletter.