The Kellogg Co. earlier this month announced a proposed reorganization plan for its European business designed to “simplify the organization, increase organizational efficiency and enhance key processes.”
Kellogg expects the project to result in cumulative pre-tax charges of approximately $50 million. Cash costs are expected to be about $57 million, the company noted in a May 13 filing with the U.S. Securities and Exchange Commission.
Kellogg said it expects to incur approximately $33 million in employee-related costs, which will include severance and other termination benefits; as well as other costs totaling approximately $17 million, which primarily will consist of charges related to relocation, third-party legal and consulting fees, and contract termination costs.
“The proposed changes are subject to consultation processes as appropriate, with employee representative groups in the region,” Kellogg said. “The overall project is expected to be substantially completed by Dec. 31, 2020.”
Kellogg entered Europe in the 1960s. The company had adjusted operating profit of $333 million in its Europe division in the fiscal year ended Dec. 29, 2018, which compared with $316 million in fiscal 2017. Net sales totaled $2,395 million, up from $2,291 million.
By Eric Schroeder
Source: Food Business News
The facility is designed to foster innovation and deepen collaboration with customers, by offering a range of new services and solidifying its role as a central hub for customer support. Tereos’ team, supported by a network of 50 scientists, will ensure customers can innovate and meet the rising consumer demand for healthier and more sustainable products.
Glanbia has agreed to acquire Flavor Producers from Aroma Holding for an initial consideration of $300 million. Flavor Producers is a US-based flavour platform, providing flavours and extracts to the F&B industries, with a focus on organic and natural ingredients.
Lesnard, who previously worked at Nike, The North Face and Sephora, has a mission to “grow and sustain GODIVA’s position and expertise in the premium chocolate category, leveraging ongoing support from pladis to take GODIVA and its legendary chocolate to new heights.”