WK Kellogg Co (KLG) Morgan Stanley Global Consumer & Retail Conference summary

Rationale and progress since the spin

• Separation from Kellanova aimed to unlock value by allowing distinct strategies and independent balance sheets.

• Successfully integrated five previously separate business units across regions and channels.

• Transformation included overhauling marketing, sales, and supply chain capabilities.

• Built a scalable direct sales force and dedicated distribution system leveraging legacy global capabilities.

• Executing on strategic priorities and building a platform for future growth.

Cereal category outlook and business model

• Targeting stable sales from 2024–2026 with a focus on outsized margin expansion.

• Planning based on pre-COVID category trends, assuming low single-digit declines.

• Category performance has been stable, supporting the company’s value creation model.

• Focused sales force and integrated business drive deeper category expertise and execution.

Market share and supply chain recovery

• Lost 500 basis points of share due to a 2021 plant fire and strike; have regained 250 basis points.

• Service levels have improved significantly, with further gains expected as supply chain investments continue.

• $500 million supply chain modernization underway, focusing on new technology, plant upgrades, and efficiency.

• Closing and downsizing older facilities to shift production to more efficient plants.

• Margin expansion tied to these investments, with major benefits expected by 2026.