Kellanova's Commitment to Bring Consumer-Valued Innnovation to Shelves Supporting Its Brand Health

After untangling its operations, Kellanova's strategic playbook now centers almost exclusively on its global snacking portfolio. But we don't think it will abandon its focus on increasing investments in its capabilities and brands while extracting inefficiencies. In this context, we think it will continue to judiciously tailor its mix to expand pack size options to extend its distribution. However, management's motivation for the split lacked substance, in our view; from where we sit the primary driver was unlocking a higher multiple for the faster-growing snack business now that it's unencumbered from the mature North American cereal brands.