BYND - This Food Giant Is Spinning Off Its Plant-Based Division -- and It Could Eat Beyond Meat For Lunch
On June 21, Kellogg (NYSE: K) announced that it would spin off its plant-based meat operation, MorningStar Farms. It's referring to that future company by the placeholder name of "Plant Co" for now, but whatever name it eventually goes public under, it will be a formidable competitor to Beyond Meat (NASDAQ: BYND) and privately held Impossible Foods.
Kellogg likely won't complete that spinoff until late 2023 -- and it expects to precede that by spinning off its North American cereal business. However, I believe investors should still get to know this plant-based food company now.
The idea that MorningStar Farms would be a strong company on its own isn't new. In 2019, journalist Brett Arends published an opinion piece for MarketWatch in which he called the brand "a 'fake meat' gold mine." In it, Arends said that Kellogg could unlock substantial shareholder value by spinning the MorningStar Farms division out, based on the extreme valuation of Beyond Meat stock at the time.
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This Food Giant Is Spinning Off Its Plant-Based Division -- and It Could Eat Beyond Meat For Lunch