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
Consumer behaviors and preferences are evolving rapidly. With macro shifts in society, inflation and food supply challenges set to profoundly influence how people consume food and beverages, Givaudan is exploring what the world of dairy alternatives will look like in the coming decade.
After nearly three decades with AFI, Andersen is leaving to pursue a different career path “to work on diverse projects and explore opportunities to serve as board member”. Serving as CEO since 2010, Andersen joined AFI in 1994, initially overseeing applications and R&D. Over the years, he has maintained a strong focus on the whey business.
The Kraft Heinz Company has introduced five new members to its executive leadership team, who will collaborate with Carlos Abrams-Rivera upon assuming the CEO role in 2024. Pedro Navio will assume the position of North America president at the beginning of next year. In addition, Willem Brandt, Bruno Keller, Cory Onell and Diana Frost will join Abrams-Rivera and Navio on the executive leadership team.
