It is not unusual for big-name companies to also own other companies. This business move can often allow for company growth and addition paths of revenue. However, when companies want to put more focus toward specific brands, they may choose to conduct business sales.
California readers may be interested that Kellogg is considering selling some of its smaller businesses. Among those businesses are Keebler and Famous Amos cookies, Fruity Snacks, Stretch Island fruit snacks and others. The reason for these possible sales is that Kellogg wants to become more focused on the demand for its other food products. A statement from the CEO of the company indicated that these brands have had a harder time obtaining investments and resources, and selling these brands would allow for more attention on more lucrative products.
Kellogg considers those more lucrative products their "power brands," which include Pringles, Club Crackers, Rice Krispies Treats and Cheez-Its. Selling businesses is not the only change Kellogg is looking to make as the company is also considering selling its snacks in different packaging. Specifically, producing more single-serve snack packages is under consideration.
Business sales can often allow companies to reallocate investment funds and find new avenues for continuing business growth. Of course, selling businesses can be complicated and involve a substantial amount of paperwork. California business owners looking to sell their companies may want to make sure that they have the right help while doing so. Consulting with knowledgeable business law attorneys could help interested parties make sure that they follow the proper steps for conducting these sales.