Kellogg, the American food group behind Rice Krispies and Pringles, will become the latest US heavyweight to break itself up in an attempt to boost growth (The Times £). Shares in the US group closed about 2% higher on Tuesday after it laid out plans for the tax-free spin-offs, which came against the backdrop of rising costs and concerns about consumers trading down to cheaper options as food producers increase prices in response (The Financial Times £). In recent years, the company has focused on building its snacking business, which includes the international cereal firm that serves the UK (The Daily Mail).

The Kellogg split-up creates opportunity for hungry PE firms, writes the FT’s Lex column. The cereal group has a chunky amount of revenue — $2.4bn. But its operating margin lags at about 10%. Expect lean eaters including private equity to salivate at the chance to buy a premium brand in need of revitalisation. (The Financial Times £)

Sky News’ Ian King writes: “The break-up will be seen as a sign of frustration among the company’s management that its efforts in trying to revive its fortunes have not been reflected in its share price. The name of Kellogg is seen as synonymous with breakfast cereals - which is problematic since this is a food category that is seen as in long-term decline.” (Sky News)

Ocado bosses have pledged that its £578m fundraising will be the last time it taps investors before turning cashflow positive in the next four to six years (The Times £).

City analysts were split on the merits of the move. William Woods at Bernstein said despite ‘short-term pain’ the fundraising would be positive in the long run. (The Daily Mail)

Long-term shareholders must pray Ocado’s latest fundraiser is the last, writes The Guardian’s Nils Pratley. “They have funded the company’s cash consumption for 20 years on the promise of spectacular returns eventually. This time “the medium term” needs to happen.” (The Guardian)

Investors remain supportive of the group even though its share price has halved in the past year. Long-term shareholders welcomed the latest fundraising, which means Ocado has raised more than £4bn in its time as a public company. (The Financial Times £)

Pricey Ocado is going to be crushed by Aldi and Lidl, writes The Telegraph’s Ben Marlow. The company is expanding at a time when the shine has come off online supermarkets. (The Telegraph)

Ocado is meant to be the type of company London’s equity markets just won’t back, writes Cat Rutter Pooley in the FT. “Ocado is proof that they can. It’s an unprofitable, cash hungry company that has been afforded an extraordinary amount of time and capital to prove itself. Expect it to take more time and more money. But at this point — and this price — what’s a little more?” (The Financial Times £)

Surging inflation is expected to push up British grocery bills by £380 this year, according to new consumer data, as the Bank of England chief economist argued that higher interest rates would be necessary to tame rising prices (The Financial Times £). Supermarket inflation hit 8.3% in the past month, the highest rate in 13 years, adding £380 to annual bills as the rising cost of living weighs on families (The Guardian). That means shoppers could be paying on average an extra £32 a month for food and other groceries (The BBC).

Supermarket shoppers are already swapping branded items for cheaper own-label alternatives as grocery bills rise at their fastest pace in almost 13 years (The Daily Mail). Demand for supermarket value ranges has surged by 12% as grocery inflation hits its highest level in 13 years, according to closely-watched industry data (Sky News).

Some Asda shoppers are setting £30 limits at checkouts and petrol pumps, the supermarket’s chairman has said. Customers are putting less in their baskets, switching to budget ranges and are worried about the future, said Lord Stuart Rose. (The BBC)

DS Smith has reported a big rise in annual profit, despite being affected by “significant cost increases” and supply chain issues caused by Russia’s invasion of Ukraine. (The Times £)

Marks & Spencer has sparked a public row with Michael Gove, accusing the Conservative cabinet minister of “political grandstanding” after he ordered a public inquiry into its plan to demolish and rebuild its flagship Oxford Street store in London (The Guardian). Marks & Spencer has attacked a decision by Michael Gove to halt the redevelopment of its flagship Oxford Street store as “political grandstanding” (The Telegraph).

The outgoing chief executive of the discount retailer B&M earned £5m last year – more than the boss of Tesco (The Guardian). Departing B&M boss Simon Arora was paid £5million last year, the company’s annual report revealed (The Daily Mail).

Rishi Sunak has been urged to reject plans for a new online sales tax as economists warn it would add to inflation just as families are already reeling from the fastest price rises in 40 years. (The Telegraph)

Food prices for the eurozone’s shoppers are set to keep rising at near-record rates for at least another year, despite the region’s largely self-sufficient agriculture sector, according to the European Central Bank. (The Financial Times £)

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