Kellogg (NYSE:K) announces a reorganization plan for its North American supply chain network in an effort to increase productivity and offset inflation, according to an 8-K filed with the SEC.
The plan involves shifting product production to optimal locations and Kellogg hopes it will drive efficiencies starting 2023 and be completed by early 2024. The total tax is expected to be $45M
Executives of Kellogg mentioned supply chain problems multiple times in their earnings call early August.
"However, the economy-wide supply chain challenges... are impeding production and shipping and creating incremental operating costs as well, particularly in quarter three." said CFO Amit Banati, as the company now expects gross profit margin in 2021 to finish below 2019 levels, but reaffirmed its overall outlook.