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Kellogg’s business split could spark a trend in other companies

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Yahoo Finance culinary reporter Allie Canal details how Kellogg's decision to split itself may inspire other name brand grocery companies to do the same.

Video transcript

- Wall Street still consuming the split of a Kellogg into three company cereal snacks and plant-based products. It won't happen until the end of next year, but it's already raising some questions about whether or not this is a start of a new trend within the industry. Alexandra Canal is here with the details. And Allie, this certainly has been some buzz ever since we got this announcement from Kellogg last week. So are we going to hear something similar from some of those other companies in the industry?

ALLIE CANAL: That's right, Shawna. Big Food is a big topic on Wall Street. We just heard from General Mills this morning. They reported fourth quarter earnings that beat expectations. They had really strong, organic sales growth. They were able to pass along some of those price hikes to consumers, but they're one of many companies that analysts are now thinking, who else will be next?

So I spoke with Bank of America Analyst, Bryan Spillane, and he listed three companies that he has his eye on, number one being Constellation Brands. He says that their wine business and their beer business, they have very different growth-to-cash-flow ratios. They could potentially split up. With Campbell's, we could potentially see their packaged food and soup division be separated from their snack division. And then, Unilever, this is a company that has a lot of different products. We have Axe body spray, Dove, Ben and Jerry's ice cream, and analysts think this could also be a good one to separate food from.

So there's a lot to be told here in this story. There's still a lot of questions when it comes specifically to this Kellogg's deal, but these are a few companies that we could potentially see another shakeup, another breakup, or an acquisition of some kind.

- All right. Alexandra Canal, thanks so much.

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