John Bryant is taking a bigger bite out of the global snack business.
Following the acquisition of snack giant Pringles last year, Bryant, president and chief executive officer of Battle Creek, Mich.-based Kellogg Co., said Kellogg is on its way to “transforming Kellogg into a global cereal and global snacks company.”
“With the acquisition of Pringles, we now have a truly global snacks platform on which to grow a global snacks business,” he said in written comment to SN. “It’s a tremendously popular brand that offers Kellogg unprecedented growth opportunities, both in North America and around the world. When Pringles employees joined our Kellogg team, we gained an enormous wealth of talent and expertise, as well as a snacks-specific commercial and supply chain model in Latin America, Europe and Asia Pacific.”
At the time of the acquisition, analysts noted that Kellogg had been underpenetrated in its snack buisness overseas.
Kellogg also entered a joint venture with Wilmar International, a consumer goods business in China.
“There is clear opportunity for the cereal category in China, and this joint venture gives us the infrastructure to make it a reality,” Bryant said.
Kellogg has tripled its growth in emerging markets in the last 10 years, he said, noting that the company continues to see a “tremendous opportunity” in those markets.
In addition to ongoing opportunities internationally in the global snacks and cereal business, Bryant noted that Kellogg is also driving growth in North America with its $1 billion frozen-food business, which includes brands such as Eggo and Morningstar Farms.
As health and nutrition play an increasingly important role in consumer shopping choices, Bryant said Kellogg is well-positioned to capitalize.
“Good nutrition and simple grains lie at the heart of our company, our foods and our heritage,” he said. “A true visionary, our founder, W.K. Kellogg, aspired to make ‘quality products for a healthier world.’ More than a century later, we continue to provide consumers with a wide variety of delicious and nutritious foods.”
Challenges ahead for Kellogg, Bryant said, include the economic pressure on consumers, global cost inflation, a challenging macroeconomic environment in Europe, and intense competition in the categories in which Kellogg operates.
“However, we are strongly positioning the company for long-term success,” Bryant said. “We are growing the global cereal category, becoming a global snacks player, expanding our frozen business and seeking growth in emerging markets. We’re supporting our well-loved brands through brand building and strong innovation.”
Kellogg is also seeking to support communities and hunger relief through its new global Breakfasts for Better Days initiative, which aims to donate 1 billion servings of cereal and snacks to those most in need by 2016.
|More from Supermarketnews