Shares of Kellogg Co. (K) dropped nearly 2% on Tuesday, Nov. 13, after the cereal and snacks maker said it was exploring the sale of its Keebler, Famous Amos and fruit snacks businesses.
Kellogg stock was down 1.96% at $63.04 in midday trading. The blue-chip company's shares are down more than 15% since reaching a 52-week high of $74.98 on Sept. 17.
Kellogg announced on Monday, Nov. 12, that it plans to reorganize its North American division, which includes exploring selling its cookies and fruit snacks units in an effort to recalibrate its focus on its core businesses to remain competitive.
The maker of Special K cereal said it was focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Other brands up for sale include Murray and Mother's cookies and Stretch Island fruit snacks.
Kellogg five years ago launched "Project K" to save up to $475 million annually by 2018. The program includes various cost-saving measures including changes to its storage and delivery operations and the selling off of certain brands and divisions.