Printer Friendly
The Free Library
23,396,934 articles and books


Kellogg Company Outlines Its Strategy for Growth.

BATTLE CREEK, Mich., Dec. 16 /PRNewswire/ -- Kellogg Company (NYSE: K), meeting today in New York City with security analysts, outlined a five-point strategy for growth in 1999 and the new century.

"We are determined to achieve new growth in our ready-to-eat cereal business and continue the rapid global expansion of our convenience foods business," said Arnold G. Langbo, chairman of the board and chief executive officer.

Kellogg's strategy includes:

* Leadership in product innovation. Kellogg announced that, early in

1999, it will introduce a new premium line of cereals called Country

Inn Specialties as well as a new fortification program in many of its

cereals called K-SENTIALS(TM). Many more product introductions in both

cereal and convenience foods are planned for later in 1999.

* Strengthening the company's seven largest cereal markets: United

States, United Kingdom, Mexico, Canada, Australia, Germany, and France.

These markets represent 80 percent of Kellogg's global cereal business.

In 1999, the company's cereal marketing investment for these countries

will increase at a double-digit rate.

* Accelerating the growth of its convenience foods business. Kellogg

will focus both on expansion into new markets and increased penetration

of new distribution channels, including single-serve channels such as

convenience stores, gas stations, vending, and foodservice. "Globally,

convenience foods is now more than a $1.6 billion business for Kellogg

Company and we believe it will continue to grow substantially," said

Carlos M. Gutierrez, president and chief operating officer.

* Developing a more focused organization. A recent initiative in

Kellogg's headquarters and North American operations has created a

simplified, focused, and more accountable organization, aligned much

more closely with the company's growth strategy. Sustaining and

continuing to improve this organization is a high priority.

* Continuing to reduce costs. Kellogg expects to save over $150

million in 1999 from initiatives undertaken in 1998. The company also

estimates capital spending to drop from about $400 million in 1998 to

about $270 million in 1999 and about $250 million in 2000. "We are

totally committed to make 1999 the year when our earnings performance

begins a consistent pattern of year-to-year increases," Gutierrez said.

Kellogg Company also announced today the appointment of W. Stephen Perry as vice president -- tax, internal auditing and treasurer of the company, effective January 1, 1999. Perry's responsibilities will include investor relations. He has served as vice president -- taxes since joining the company in January 1997.

Kellogg Company is the world's leading producer of ready-to-eat cereal and a leading producer of other convenience foods, including cereal bars, toaster pastries, frozen waffles, and bagels.
COPYRIGHT 1998 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Geographic Code:1USA
Date:Dec 16, 1998
Words:418
Previous Article:/FROM PR NEWSWIRE CHICAGO 888-776-6551/ TO BUSINESS AND EDUCATION EDITORS:.
Next Article:AIG-Hyperion PIBOR ABS Fund Plc Remains on Fitch IBCA Alert: Negative - Fitch IBCA -.
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters