Morning Brew - ☕️ Fast break

Making the case for Kellogg’s three-way split.
Morning Brew June 23, 2022

Retail Brew

Route

Hi there. Ohio State has trademarked the word “the.” Meanwhile, we’re still waiting to hear back on “a,” “an,” and “and.”

In today’s edition:

Jeena Sharma, Katishi Maake

CPG

Split ends

A money bag filled with chips Illustration: Francis Scialabba, Photo: airborne77/Adobe Stock

Although romcoms tell us otherwise, not everything lasts forever. Take Kellogg, which is splitting up…well, into three businesses. On Tuesday, the company said that by the end of 2023, its snacking, cereal, and plant-based divisions will run as three separate public companies.

Separate ways: The news comes a decade after Kellogg bought Pringles, a decision that has helped it grow its ever profitable global snacking division that scored $11.4 billion—out of $14.2 billion—in revenue last year. By contrast, Kellogg’s core cereal biz has been lagging and only accounted for $2.4 billion of its sales last year.

As such, splitting up the company seems like a smart decision, as it separates the “cash cow brands” from its growth brands, Aaron Sorensen, partner at Axiom Consulting Partners, told Retail Brew.

  • Kellogg CEO Steve Cahillane made a similar pitch to Food Dive: “[If you] look at the three businesses and look at the sum of the parts, you’d say that yes, we’re not getting the value for the breadth and scale, for our snacking business for sure,” he said. “The best way to drive these three businesses forward is through their independence.”

Shifting consumer preferences also lends itself to the decision as the company is “reinventing itself in order to stay relevant,” Sorensen added. “I would applaud the decision, because the brands that are going to be the billion-dollar brands are probably not the same brands that they have today.”

Flashback: The Kellogg split is one of the most high-profile in the food biz since Kraft Foods separated to create Mondelez International—its international snack business—in 2011. Earlier this week, Mondelez also announced that it would acquire Clif Bar for $2.9 billion.

Planting the seeds: While the snacking division has been enjoying all the glory, Sorensen said long-term growth might be in Kellogg’s plant-based foods biz.

“If you look at as a shareholder where future growth is going to come from, I think that plant division in particular may drive greater growth, given where the consumer is headed in terms of wellness and the types of products that they’re going to offer,” he said.

Click here to keep reading.—JS

        

TOGETHER WITH ROUTE

Rub elbows with e-commerce pros

Route

For e-commerce merchants, all roads lead to Route Connect.

The premiere e-commerce event of the year is coming in hot—and it’s all going down on June 30 from 6–9:30pm ET. Tune in online and join some of the top names in the digital retail space as they reflect on this unique moment and plan for a bright future.

Panels will dig deep into relevant issues like growth, sustainability, and improving connection and customer experience. You’ll hear from founders, leaders, and creators at world-class brands like Fly by Jing, Supreme, and Inamorata.

Get inspired, get energized, and get ideas to help you build your e-commerce brand this year…and beyond.

Register for Route Connect and join the party on June 30.

NUMBERS GAME

Ecofriendly talk

Sustainability efforts at fashion brands Francis Scialabba

Sustainability is all the talk these days, but it might be just that—talk. A whopping 93% of retail executives believe technology can make it possible for their companies to reach sustainability goals, but only slightly more than half (54%) know where to start, according to a Harris Poll survey of 1,491 executives commissioned by Google Cloud.

What’s the deal? ESG practices are top of mind for retail executives: 71% said they’re making ESG a priority, compared to the 64% global average of leaders across industries.

  • For comparison, 59% of retail execs said driving revenue and/or growth is a priority.

“That higher level of visibility also means that the environmental footprint of retail is often under the microscope, from sustainability of fashion and product packaging, to the complexity of resource-intensive supply chains,” Carrie Tharp, VP of retail and consumer solutions at Google Cloud, said in a statement.

In reality…Despite these stated intentions, some sustainable practices aren’t all that widespread. Only 36% of retail execs said they operate a recycling program, as opposed to the 42% of execs across industries.

+1: As for retail execs’ other top priorities, 65% said evolving business strategies, while 63% went with retaining and attracting talent.—KM

        

TOGETHER WITH AMAZON ADS

Amazon Ads

Gen Z went to the market…and had some sticker shock (who doesn’t these days?). To get a taste of adult Gen Zers’ shopping mindsets, we partnered with Amazon Ads on a fun quiz that reveals how they’re being mindful when filling up their carts, IRL and online. Take it now.

SWAPPING SKUS

Today’s top retail reads.

Sachet away: While Unilever has publicly denounced single-use plastic sachets for products like shampoo and toothpaste, it’s reportedly worked behind the scenes to undermine laws banning them in several Asian countries. (Reuters)

On the money: Texas-based fast-casual chain On the Border saw sales fall 36% between 2006 and 2021, but this year it’s finally on track to notch positive results, thanks to a C-suite refresh and a menu makeover. (Restaurant Business)

Coin flip: Alo Yoga will now let its corporate employees convert their pay to cryptocurrency as part of its effort to “move wellness into Web3,” according to VP and head of marketing Angelic Vendette. (Business of Fashion)

Back-to-school cheat sheet just dropped. Plan your retail brand’s BTS approach with Back to School in 2022 from Ziff Media Group. Get the tips, insights, and stats you need for success, right here.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Chipotle workers in an Augusta, Maine, location have filed for a union election, a first for the chain.
  • Franchise Group is reportedly thinking about dropping its bid for Kohl’s to around $50 a share from ~$60.
  • Nike is exiting Russia in full, after temporarily suspending operations there in March.
  • American Eagle, taking a break in the China market, closed its Tmall store.
  • Revlon is the latest meme stock after its shares surged more than 50% on Wednesday.

ICYMI

Catch up on the Retail Brew stories you may have missed.

EVENTS

FOMO

FOMO

Introducing Retail Brew’s newest debut ::drumroll:: The Sku: A Retail Brew Summit. FOMO is real, friends.

Here’s what’s on the agenda:

  • Meeting demand and maximizing profit
  • Managing your organization across channels
  • Creating omni-channel engagement with customer journeys
  • Sustainability: who is doing what and how?
  • Using technology to drive sales

Early-bird pricing ends soon! Register now to save your seat (and some $$). Only $499 for a limited time!

SHARE THE BREW

Share Retail Brew with your coworkers, acquire free Brew swag, and then make new friends as a result of your fresh Brew swag.

We’re saying we’ll give you free stuff and more friends if you share a link. One link.

Your referral count: 2

Click to Share

Or copy & paste your referral link to others:
morningbrew.com/retail/r/?kid=303a04a9

 

Written by Jeena Sharma and Katishi Maake

Was this email forwarded to you? Sign up here.

WANT MORE BREW?

Industry news, with a sense of humor →

  • Future Social: the Brew's take on the world of social media
  • HR Brew: analysis of the employee-employer relationship
  • IT Brew: moving business forward; innovation analysis for the CTO, CIO & every IT pro in-between

Tips for smarter living →

Podcasts → Business Casual, Founder's Journal, Imposters, and The Money with Katie Show

YouTube

Accelerate Your Career with our Courses →

ADVERTISE // CAREERS // SHOP // FAQ

Update your email preferences or unsubscribe here.
View our privacy policy here.

Copyright © 2022 Morning Brew. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

Key phrases

Older messages

Think inside the Roblox

Thursday, June 23, 2022

Creative challenges in the metaverse. June 23, 2022 Marketing Brew TOGETHER WITH #paid It's Thursday. Yesterday at Cannes, iHeartMedia announced a podcast called Prop Culture. It's hosted by

☕️ Out of whack

Thursday, June 23, 2022

Biden proposes a gas tax holiday... June 23, 2022 View Online | Sign Up | Shop Morning Brew TOGETHER WITH Apple Card Good morning. Would you consider yourself a “social” person? No, not like the kind

☕ On the line

Wednesday, June 22, 2022

How Goldfish is reaching Gen Z. June 22, 2022 Retail Brew TOGETHER WITH Adverity Hello, hello. Summer has arrived—and with it comes a can't-miss retail industry event. The Lead Innovation Summit

☕ Party’s over?

Wednesday, June 22, 2022

Streamer belt-tightening. June 22, 2022 Marketing Brew TOGETHER WITH Sailthru Welcome to Wednesday. Between Cannes, VidCon, and NFT.NYC, and the (probably) thousands of other marketing events happening

☕ Quantum questions

Wednesday, June 22, 2022

How should the quantum world balance ethics and innovation? June 22, 2022 Emerging Tech Brew TOGETHER WITH Arculus Happy Summer. As temperatures heat up in the US, the Fed is working desperately to

21 Last-Minute Gift Ideas

Monday, May 2, 2022

30 Best Mother's Day Gifts 30 Best Mother's Day Gifts Gifts for Mom 30 Best Mother's Day Gifts That Will Spoil Mom The Best Mother's Day Flower Delivery Services Creative Ways to Treat

👉 Evmos Finally Goes Live On Cosmos After Years of Development

Monday, May 2, 2022

We bring you the top stories in crypto every week! Stories like... Monday, May 2, 2022 Sign Up Your Weekly Update On All Things Crypto In Partnership With: TL;DR Evmos Finally Goes Live On Cosmos

Elon Musk's China problem

Monday, May 2, 2022

"The expansion of shelter-in-place, or as we call it, forcibly imprisoning people in their homes… is, in my opinion, breaking people's freedoms in ways that are horrible and wrong… What the

Paymaya vs PDAX vs Coins.ph

Saturday, April 9, 2022

CRYPTODAY 077 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Why Spotify's podcast bet is paying off

Wednesday, June 29, 2022

Spotify revolutionized the modern day music industry; that's earned it some benefit of the doubt. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

June 29 - Gap Inc. opens lab stores | Pinterest taps Google commerce vet for CEO

Wednesday, June 29, 2022

Gap Inc. unveils 4 lab stores at San Francisco headquarters; Pinterest names Google president of commerce as CEO; Function of Beauty hires 20-year L'Oréal vet as chief marketer; Glossier to raise

☕ Prime time

Wednesday, June 29, 2022

How shoppers plan to spend on Prime Day June 29, 2022 Retail Brew TOGETHER WITH Salesforce for Retail Hi there. Drumroll, please…We have an announcement: Retail Brew is thrilled to welcome a new

Any new abortion ban will require dystopian new surveillance schemes

Wednesday, June 29, 2022

With laws banning abortion set to take effect in up to 22 states, we're investigating the draconian means by which they'll be enforced. The last time abortion was illegal in large swaths of

Calling all TikTokers

Wednesday, June 29, 2022

In-demand skills at creative agencies. June 29, 2022 Marketing Brew TOGETHER WITH LinkedIn Ads Welcome to Wednesday. Yesterday was a great day to be the teams behind those v repetitive insurance

Biden and Saudi Arabia.

Wednesday, June 29, 2022

Biden promised to make the crown prince a pariah. Now he's headed to Saudi Arabia. Biden and Saudi Arabia. By Isaac Saul – 29 Jun 2022 – View online → I'm Isaac Saul, and this is Tangle: an

June 29 - Facebook Adds New Groups Engagement Options, Including New Side Bar Access to Latest Group Updates

Wednesday, June 29, 2022

New Study Shows Twitter is the Most Used Social Media Platform Among Journalists; Meta Reassures Users That it Has Not Changed its Policies on Abortion-Related Content; Social Platforms Could Face

☕️ The cloud is not a cloud

Wednesday, June 29, 2022

Plus, three questions with an EV charging vet. June 29, 2022 Emerging Tech Brew TOGETHER WITH Paradox Hello. Last Friday, the Supreme Court overturned Roe v. Wade after nearly 50 years of precedent

Culture Cemeteries

Wednesday, June 29, 2022

Culture cemeteries?! Oh gosh, we hope not. Here's some tips for cultural first aid... Culture Cemeteries By Sylvia Bishop – 29 Jun 2022 – View online → Man Of Culture Sukhada Tatke | Fifty Two |

🌊 New Country Drop?

Wednesday, June 29, 2022

Scotland's leader announced plans for a second independence referendum to be held in October 2023. Scotland has been a part of the United Kingdom... June 29, 2022 Yesterday, a reader shared a