Despite calls from government officials to reconsider, Kellogg’s is following through with its plans to slash its workforce at the Mariemont plant by year’s end.
The breakfast cereal giant posted a 2.8% decline in Q4 2019 sales, hurt by falling cereal sales on top of offloading its Keebler cookie business and other assets to Nutella maker Ferrero.
Kellogg Co said the divestiture of its cookie and fruit snack businesses is resulting in $35m in pretax charges, $20m of which are related to employee severance and termination benefits.
Ferrero has edged out Hostess to capture the cereal giant’s cookie, fruit snacks and ice cream cone family of brands, including Famous Amos, Murray’s and the Girl Scouts of the USA brand Little Brownie Bakers, plus Stretch Island and Fruity Snacks.
Twinkie-maker Hostess Brands and Ferrero are reportedly the frontrunners in the race to buy Kellogg’s Keebler, Famous Amos, Murray and Mother’s cookie businesses, as well Stretch Island fruit snacks business, in a roughly $1.5bn deal.