||It has been suggested that Austin (brand) be merged into this article. (Discuss) Proposed since April 2014.|
|Traded as||NYSE: K
S&P 500 Component
|Founded||February 19, 1906|
|Founders||Will Keith Kellogg|
|Headquarters||Battle Creek, Michigan, United States|
|Key people||James M. Jenness
John A. Bryant
(President and CEO)
|Revenue||US$ 14.792 billion (2013)|
|Operating income||US$ 1.562 billion (2012)|
|Net income||US$ 1,807 million (2013)|
|Total assets||US$ 15.474 billion (2013)|
|Total equity||US$ 3.607 billion (2013)|
Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Froot Loops, Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Cocoa Krispies, Keebler, Pringles, Pop-Tarts, Kashi, Cheez-It, Eggo, Nutri-Grain, Morningstar Farms, and many more. Kellogg's stated purpose is "Nourishing families so they can flourish and thrive."
Kellogg's products are manufactured in 18 countries and marketed in over 180 countries. Kellogg's largest factory is at Trafford Park in Manchester, United Kingdom, which is also the location of its European headquarters. Kellogg's holds a Royal Warrant from Queen Elizabeth II and the Prince of Wales.
- 1 History
- 2 Operations
- 3 Marketing
- 4 Controversies
- 5 See also
- 6 References
- 7 External links
Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906, by Will Keith Kellogg as an outgrowth of his work with his brother John Harvey Kellogg at the Battle Creek Sanitarium following practices based on the Seventh-day Adventist Church. The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922.
In 1930, the Kellogg Company announced that most of its factories would shift towards 30 hour work weeks, from the usual 40. W.K. Kellogg stated that he did this so that an additional shift of workers would be employed in an effort to support people through the depression era. This practice remained until World War II, and continued briefly after the war, although some departments and factories remained locked into 30 hour work weeks until 1980. From 1969 to 1977, Kellogg's acquired various small businesses including Salada Foods, Fearn International, Mrs. Smith's Pies, Eggo, and Pure Packed Foods; however, it was later criticized for not diversifying further like General Mills and Quaker Oats were.
After underspending its competition in marketing and product development, Kellogg's U.S. market share hit a low 36.7% in 1983. A prominent Wall Street analyst called it "a fine company that's past its prime" and the cereal market was being regarded as "mature". Such comments invigorated Kellogg chairman William E. LaMothe to improve, which primarily involved approaching the demographic of 80 million baby boomers rather than marketing children-oriented cereals. In emphasizing cereal's convenience and nutritional value, Kellogg's helped persuade U.S. consumers age 25 to 49 to eat 26% more cereal than people that age ate five years prior. The U.S. ready-to-eat cereal market, worth $3.7 billion at retail in 1983, totaled $5.4 billion by 1988, and had expanded three times as fast as the average grocery category. Kellogg's also introduced new products including Crispix, Raisin Squares, and Nutri-Grain Biscuits and reached out internationally with Just Right aimed at Australians and Genmai Flakes for Japan. During this time, the company maintained success over its top competitors: General Mills, who largely marketed children's cereals, and Post, who had difficulty in the adult cereal market.
In March 2001, Kellogg's made its largest acquisition, the Keebler Company. Over the years it has also gone on to acquire Morningstar Farms and Kashi divisions or subsidiaries. Kellogg's also owns the Bear Naked, Natural Touch, Cheez-It, Murray, Austin, Famous Amos, Gardenburger (acquired 2007) and Plantation brands. Presently, Kellogg's is a member of the World Cocoa Foundation.
- Belgium: Zaventem & Mechelen plant
- Brazil: São Paulo
- Mississauga, Ontario – Canadian head office
- Anjou, Quebec – Eastern Canada sales office
- Calgary, Alberta – Western Canada sales office
- London, Ontario – manufacturers and distributes cereals (including Corn Flakes) in Canada. Set to close at end of 2014,
- Belleville, Ontario – cereal production plant opened 2009 and upgraded 2011; will take over some operations from London after 2014
- China: Shanghai – Joint venture with agribusiness and food company Yihai Kerry
- France: Noisy-le-Grand, Paris
- Germany: Bremen
- India: Mumbai
- Republic of Ireland: Kellogg Europe Trading, Swords, Dublin
- Italy: Milan
- Japan: Shinjuku, Tokyo
- Malaysia: Bandar Enstek, Negeri Sembilan
- Mexico: Querétaro
- Middle East
- Netherlands: Den Bosch
- Philippines: Alaska Milk Corporation
- Poland: Kutno
- Portugal: Lisbon
- Russia: Kellogg Rus LLC
- South Africa: Springs
- South Korea: Seoul
- Spain: Valls
- Sri Lanka: Colombo; Sri Jayawardenapura Kotte
- Thailand: Bangkok, Rayong (snacks and cereals)
- United Kingdom:
- United States: Battle Creek, Michigan
- Venezuela: Maracay, Aragua
Various methods have been used in the company's history to promote the company and its brands. Foremost among these is the design of the Kellogg's logo by Ferris Crane under the art direction of famed type guru Y. Ames. Another was the well-remembered jingle "K E double-L, O double-good, Kellogg's best to you!"
Some of Kellogg's marketing has been questioned in the press, prompted by an increase in consumer awareness of the mismatch between the marketing messages and the products themselves.
Food bloggers are also questioning the marketing methods used by cereal manufacturing companies such as Kellogg's, due to their high sugar content and use of ingredients like High-fructose corn syrup.
Kellogg's was a major sponsor throughout the run of the hit CBS panel show What's My Line? It and its associated products Frosted Flakes and Rice Krispies were also major sponsors for the PBS Kids children's animated series Dragon Tales.
Premiums and prizes
W.K. Kellogg was the first to introduce prizes in boxes of cereal. The marketing strategy that he established has produced thousands of different cereal box prizes that have been distributed by the tens of billions.
Kellogg's Corn Flakes had the first cereal premium with The Funny Jungleland Moving Pictures Book. The book was originally available as a prize that was given to the customer in the store with the purchase of two packages of the cereal. But in 1909, Kellogg's changed the book give-away to a premium mail-in offer for the cost of a dime. Over 2.5 million copies of the book were distributed in different editions over a period of 23 years.
Cereal box prizes
In 1945, Kellogg's inserted a prize in the form of pin-back buttons into each box of Pep cereal. Pep pins have included U.S. Army squadrons as well as characters from newspaper comics and were available through 1947. There were five series of comic characters and 18 different buttons in each set, with a total of 90 in the collection. Other manufacturers of major brands of cereal, including General Mills, Malt-O-Meal, Nestlé, Post Foods, and Quaker Oats, followed suit and inserted prizes into boxes of cereal to promote sales and brand loyalty.
Licensed brands have been omitted since the corresponding mascots would be obvious (e.g. Spider-Man is the mascot for Spider-Man Spidey-Berry).
- Cocoa Hoots cereal: Newton the Owl
- Cocoa Krispies cereal (Known as Choco Krispis in Latin America, Choco Krispies in Germany, Austria and Switzerland, Chocos in India; and Coco Pops in Australia, the UK and Europe): Jose (monkey), Coco (monkey), Melvin (elephant), Snagglepuss (Hanna-Barbera character), Ogg (caveman), Tusk (elephant), and Snap, Crackle and Pop (who were also, and remain as of February 2014, the Rice Krispies mascots; see below).
- Corn Flakes cereal: Cornelius (rooster)
- Frosted Flakes (known as Frosties outside the US/Canada, Zucaritas in Latin America and Sucrilhos in Brazil) cereal: Tony the Tiger
- Froot Loops cereal: Toucan Sam
- Honey Smacks (US)/Smacks (other markets) cereal: Dig 'Em Frog
- Raisin Bran cereal: Sunny the Sun
- Rice Krispies (known as Rice Bubbles in Australia) cereal: Snap, Crackle and Pop
- Ricicles (UK Only) cereal: Captain Rik
- Apple Jacks cereal: CinnaMon and Bad Apple
- Honey Loops cereal: Loopy (bumblebee), Pops (honey bee)
- Keebler Cookies and Crackers : Ernie & the Elves
Kellogg's made its first foray into auto racing in 1991–92, when the company sponsored the #41 Chevrolets fielded by Larry Hedrick Motorsports in the NASCAR Winston Cup Series and driven by Phil Parsons, Dave Marcis, Greg Sacks, Hut Stricklin and Richard Petty. But they gained greater prominence for their sponsorship of two time NASCAR Winston Cup Champion Terry Labonte from 1993 until 2006, the last twelve years of that as the sponsor for Hendrick Motorsports' #5 car. Kellogg's sponsored the #5 for Labonte, Kyle Busch, Casey Mears, and Mark Martin until 2010, and currently serves as an associate sponsor for Carl Edwards' #99 car at Roush Fenway Racing.
Kellogg's placed Dale Earnhardt on Kellogg's Corn Flakes boxes for 1965 six-time Winston Cup champ and 1994 seven-time Winston Cup champ as well as Jeff Gordon on the Mini Wheats box for the 1993 rookie of the year, 1995 Brickyard 400 inaugural race, 1997 Champion and 1998 three-time Champ, and a special three-pack racing box set with Dale Earnhardt, Jeff Gordon, Terry Labonte, and Dale Jarrett in 1996.
Kellogg's has used some merchandising for their products. Kellogg's once released Mission Nutrition, a PC game that came free with special packs of cereal. It played in a similar fashion as Donkey Kong Country; users could play as Tony the Tiger, Coco the Monkey, or Snap, Crackle, and Pop. Kellogg's has also released "Talking" games. The two current versions are Talking Tony and Talking Sam. In these games, a user uses a microphone to play games and create voice commands for their computer. In Talking Tony, Tony the Tiger, one of Kellogg's most famous mascots, would be the main and only character in the game. In Talking Sam, Toucan Sam, another famous mascot, would be in the game instead. Some toy cars have the Kellogg's logo on them, and occasionally their mascots.
There was also a Talking Snap Crackle and Pop software which is not described above.
Campaign to Overthrow California Citizen's Mandatory Labeling of Genetically Modified Foods Initiative
Kellogg Company has contributed $632,500 to the California political campaign known as "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and Food Producers." This organization was set up to oppose a citizen's initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients. As of February 2014, Proposition 37 has received almost a million signatures.
2010 Cereal Recall
On June 25, the company voluntarily began to recall about 28 million boxes of Apple Jacks, Corn Pops, Froot Loops and Honey Smacks because of an unusual smell and flavor from the packages' liners that could make people ill. Kellogg's said about 20 people complained about the cereals, including five who reported nausea and vomiting. Consumers reported the cereal smelled or tasted waxy or like metal or soap. Company spokeswoman J. Adaire Putnam said some described it as tasting stale. However, no serious health problems have been reported.
The suspected chemical that caused the illnesses was 2-methylnaphthalene, used in the cereal packaging process. Little is known about 2-methylnaphthalene's impact on human health as the Food and Drug Administration has no scientific data on its impact on humans, and the United States Environmental Protection Agency (EPA) also does not have health and safety data. This is despite the EPA having sought information on it from the chemical industry for 16 years. 2-Methylnaphthalene is a component of crude oil, and is "structurally related to naphthalene, an ingredient in mothballs and toilet-deodorant blocks" that the EPA considers a possible human carcinogen.
Kellogg's offered consumers refunds in the meantime. Only products with the letters "KN" following the use-by date were included in the recall. The products were distributed throughout the U.S. and began arriving in stores in late March 2010. Products in Canada were not affected.
2012 Cereal Recall
Kellogg's has issued a voluntary recall of some of its Frosted Mini-Wheats Bite Size Original and Mini-Wheats Unfrosted Bite Size products due to the possibility of flexible metal mesh fragments in the food. The affected products are: Frosted Mini-Wheats Bite Size Original and Mini-Wheats Unfrosted Bite Size products with the letters KB, AP or FK before or after the Best If Used Before date are part of the recall. The products vary in size from single-serve bowls to large 70-ounce cartons. Use by dates range from April 1, 2013 to September 21, 2013.
|This section requires expansion. (May 2010)|
Kellogg's responded by stating "We stand behind the validity of our product claims and research, so we agreed to an order that covers those claims. We believe that the revisions to the existing consent agreement satisfied any remaining concerns."
The Children's Advertising Review Unit of the Council of Better Business Bureaus has also suggested that the language on Kellogg Pop-Tarts packages saying the pastries are "Made with Real Fruit" should be taken off the products. In July 2012, Britain banned the "Kellogg's" Special K advertisement due to its misleading information about calorific value and weight loss.
2014 Copyright Infringement
On June 2014, the Dublin band Kodaline tweeted Kellogg's about the similarities between their song "All I Want" and the music used in a Kellogg's commercial. Kellogg's responded, stating that the music was an original commission from Hush Music.
- W. K. Kellogg Foundation
- Kellogg's Cereal City USA – a former tourist attraction in Battle Creek, Michigan focused on the company's history
- Toucan Sam#Maya Archaeology Initiative for a 2011 trademark dispute over another organization's toucan logo
- "10-K 2012, Kellogg Company". http://www.sec.gov/.
- "Kellogg Company website".
- "Kellogg Company Fact Sheet (PDF)". kelloggcompany.com. Retrieved April 24, 2014.
- "Global brand, local values". Manchester Evening News. May 27, 2008.
- Jeffrey Kaplan (May–June 2008). "The Gospel of Consumption". Retrieved June 25, 2010.
- Kellogg Company FundingUniverse.com. Retrieved on 7-18-09.
- Steinbreder,H. John. HOW KING KELLOGG BEAT THE BLAHS Fortune (August 29, 1988). Retrieved on 7-18-09.
- "Kellogg to buy Pringles for $2.7 billion". Reuters. February 15, 2012.
- "Factory". Kellogg's. Retrieved August 3, 2011.
- "Welcome to Careers at Kellogg Australia". Kellogg (Aust.) Pty. Ltd. Retrieved August 25, 2011.
- "Kellogg to close London cereal factory next year". CBC News.
- Service Conseil Consommateurs Kellogg's
- "Kellogg Europe Trading Ltd (KETL)". Kellogg Company. Retrieved August 25, 2011.
- Kellogg's Japan
- "Kellogg to invest $130M in Malaysia plant, eyes Asia-Pacific expansion". Venture Capital Post. January 10, 2014. Retrieved January 20, 2014.
- "Kellogg Company to invest US$130m in Malaysia". The Malay Mail Online. January 10, 2014. Retrieved January 20, 2014.
- "Home :: Kellogg's". Kelloggsalarabi.com. Retrieved November 18, 2012.
- Kellogg Annual Report 2007 – Kellogg North America Brands
- SEC Info – Kellogg Co – 10-K – For 1/1/05 – EX-21.01
- Alaska Milk Corporation – Kellogg's Cereals is the exclusive distributor in the Philippines
- "Kellogg's South Africa".
- The Age. "Parents fed up with junk food ads". The Age. November 9, 2011.
- Richard Enion. "Do Kellogg's Really Care About You?". November 16, 2011.
- Robbins, David (April 29, 2014). "What's My Line?: A Treasure Trove". Retrieved December 25, 2014.
- "CTW - Dragon Tales - Fun & Games! (see bottom-of-page information)". Archived from the original on June 20, 2000. Retrieved December 5, 2014.
- Rod Taylor (September 1, 2003). "Kelloggs history, William Keith (W. K.) Kellogg legacy | Promotional Marketing content from Chief Marketer". Promomagazine.com. Retrieved November 18, 2012.
- Phil Ament. "Corn Flakes History – Invention of Kellogg's Corn Flakes". Ideafinder.com. Retrieved December 27, 2010.
- "Kellogg's Offers First Cereal Premium Prize". Timelines.com. Retrieved December 27, 2010.
- "Why the Food Industry Is Spending $25 Million To Keep You in the Dark | Rodale News". Rodale.com. Retrieved November 18, 2012.
- "California Proposition 37, Mandatory Labeling of Genetically Engineered Food (2012)". Ballotpedia. Retrieved November 18, 2012.
- "Kellogg’s recalls 28 million boxes of cereal". Allvoices.com. Retrieved November 18, 2012.
- Layton, Lyndsey (August 2, 2010). "US regulators lack data on health risks of most chemicals". Washington Post.
- "2-Methylnaphthalene (CASRN 91-57-6)". United States Environmental Protection Agency. May 3, 2007. Retrieved October 27, 2010.
- TOMSON and ZIOBRO, BILL and PAUL. "Kellogg Recalls Mini-Wheats". The Wall Street Journal. Retrieved October 11, 2012.
- "FTC Investigation of Ad Claims that Rice Krispies Benefits Children's Immunity Leads to Stronger Order Against Kellogg". FTC. 06/03/2010. Retrieved 4 June 2010. Check date values in:
- "In the Matter of Kellogg Company, FTC Docket No. C-4262". Concurring Statement of Commissioner Julie Brill and Chairman Jon Leibowitz. Federal Trade Commission. June 3, 2010. Retrieved June 4, 2010.
- Chan, Sewell (June 4, 2010). "Kellogg to Restrict Ads to Settle U.S. Inquiry Into Health Claims for Cereal". The New York Times. Retrieved June 4, 2010.
- Carey, Susan. "Snap, Crackle, Slap: FTC Objects to Kellogg's Rice Krispies Health Claim". The Wall Street Journal. June 4, 2010.
- InvestorPlace (June 4, 2010). "Feds say Kellogg ads mislead parents". Top Stocks. MSN Money. Retrieved June 4, 2010.
- "Britain bans Kellogg’s for ‘misleading’ advertisement". The Times Of India. July 5, 2012.
- "Kodaline not impressed with Kellogg's latest ad". RTÉ Ten. June 12, 2014. Retrieved June 13, 2014.
|Wikimedia Commons has media related to Kellogg Company.|
- Corporate website
- Corporate Responsibility report
- Nutrition site
- Kellogg's Cereal City USA closes in Battle Creek
- Directory of consumer sites
- Old Kellogg's adverts (UK only)
- Merchandise website