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Kellogg Company
Company typePublic
IndustryFood processing
FoundedFebruary 19, 1906; 118 years ago (1906-02-19)
Battle Creek, Michigan, United States
FounderWill Keith Kellogg
Headquarters,
United States
Area served
Worldwide
Key people
John A. Bryant
(Chairman and CEO)
Products
RevenueIncrease US$ 14.792 billion (2013)[1] IncreaseUS$14.8 billion[2] (2014)
Increase US$ 1.562 billion[1] (2012)
Increase US$ 1.807 billion[1] (2013)
Total assetsIncrease US$ 15.474 billion[1] (2013)
Total equityIncrease US$ 3.607 billion[1] (2013)
Number of employees
30,277 [2] (2014)
DivisionsKeebler Company
Website

Kellogg Company (also Kellogg's, Kellogg, 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."[3]

Kellogg's products are manufactured in 18 countries and marketed in over 180 countries.[4] Kellogg's largest factory is at Trafford Park in Manchester, United Kingdom, which is also the location of its European headquarters.[5] Kellogg's holds a Royal Warrant from Queen Elizabeth II and the Prince of Wales.

History

First Kellogg's package

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.[6]

From 1969 to 1977, Kellogg's acquired various small businesses including Salada Foods, Fearn International, Mrs. Smith's Pies, Eggo, and Pure Packed Foods;[7] 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 of 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, which largely marketed children's cereals, and Post, which had difficulty in the adult cereal market.[8]

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 cookies and crackers, Famous Amos, Gardenburger (acquired 2007), and Plantation brands. Presently, Kellogg's is a member of the World Cocoa Foundation.

In 2012, Kellogg's became the world's second-largest snack food company (after PepsiCo) by acquiring the Pringles potato crisps brand from Procter & Gamble for $2.7 billion in a cash deal.[9]

Products

Cereal

Advertisement, 1910s

A list of cereal products produced by Kellogg's, with available varieties:

  • All-Bran: All-Bran Original, All-Bran Bran Buds, All-Bran Bran Flakes (UK), All-Bran Extra Fiber, All-Bran Guardian (Canada)
  • Apple Jacks
  • Apple Jacks Apple vs Cinnamon Limited Edition
  • Apple Jacks 72 Flavor Blast (Germany)
  • Bran Buds (New Zealand)
  • Bran Flakes
  • Chocos (India, Europe)
  • Chocolate Corn Flakes: a chocolate version of Corn Flakes. First sold in the UK in 1998 (as Choco Corn Flakes or Choco Flakes), but discontinued a few years later. Re-released in 2011.
  • Cinnabon
  • Cinnamon Mini Buns
  • Coco Pops Coco Rocks
  • Coco Pops Special Edition Challenger Spaceship
  • Coco Pops Crunchers
  • Coco Pops Mega Munchers
  • Coco Pops Moons and Stars
  • Cocoa Krispies or Coco Pops (also called Choco Pops in France, Choco Krispies in Portugal, Spain, Germany, Austria, and Switzerland, Choco Krispis in Latin America)
  • Cocoa Flakes
  • Corn Flakes
  • Complete Wheat Bran Flakes/Bran Flakes
  • Corn Pops
  • Country Store
  • Crispix
  • Crunch: Caramel Nut Crunch, Cran-Vanilla Crunch, Toasted Honey Crunch
  • Crunchy Nut (formerly Crunchy Nut Cornflakes)
  • Crunch Nut Bran
  • Cruncheroos
  • Disney cereals: Disney Hunny B's Honey-Graham, Disney Mickey's Magix, Disney Mud & Bugs, Pirates of the Caribbean, Disney Princess
  • Eggo
  • Extra (Muesli): Fruit and Nut, Fruit Magic, Nut Delight
  • Froot Loops: Froot Loops, Froot Loops 13 Less Sugar, Marshmallow Froot Loops
  • Frosted Flakes (Frosties outside of the US/Canada): Kellogg's Frosted Flakes, Kellogg's Frosted Flakes 13Kellogg's Banana Frosted Flakes, Kellogg's Birthday Confetti Frosted Flakes, Kellogg's Cocoa Frosted Flakes,Less Sugar, Tony's Cinnamon Krunchers
  • Frosted Mini-Wheats (known in the UK as Toppas until the early 1990s, when the name was changed to Frosted Wheats. The name Toppas is still applied to this product in other parts of Europe, as in Germany and Austria)
  • Fruit Harvest: Fruit Harvest Apple Cinnamon, Fruit Harvest Peach Strawberry, Fruit Harvest Strawberry Blueberry
  • Fruit 'n Fibre (not related to the Post cereal of the same name sold in the US)
  • Fruit Winders (UK)
  • Genmai Flakes (Japan)
  • Guardian (Australia, NZ, Canada)
  • Honey Loops (formerly Honey Nut Loops)
  • Honey Nut Corn Flakes
  • Honey Smacks (US)/Smacks (other markets)
  • Jif Peanut Butter Cereal (US only)
  • Just Right: Just Right Original, Just Right Fruit & Nut, Just Right Just Grains, Just Right Tropical, Just Right Berry & Apple, Just Right Crunchy Blends – Cranberry, Almond & Sultana (Australia/NZ), Just Right Crunchy Blends – Apple, Date & Sultana (Australia/NZ)
  • Kombos
  • Krave (Discontinued in the UK, US, Italy. Was returned to the European market in 2011, and to the US market in 2012)
  • Komplete (Australia)
  • Low-Fat Granola: Low-Fat Granola, Low-Fat Granola with Raisins
  • Mini Max
  • Mini Swirlz
  • Mini-Wheats: Mini-Wheats Frosted Original, Mini-Wheats Frosted Bite Size, Mini-Wheats Frosted Maple & Brown Sugar, Mini-Wheats Raisin, Mini-Wheats Strawberry, Mini-Wheats Vanilla Creme, Mini-Wheats Strawberry Delight, Mini-Wheats Blackcurrant
  • Mueslix: Mueslix with Raisins, Dates & Almonds
  • Nutri-Grain
  • Nut Feast
  • Oat Bran: Cracklin' Oat Bran
  • Optivita
  • Product 19
  • Raisin Bran/Sultana Bran: Raisin Bran, Raisin Bran Crunch, Sultana Bran (Australia/NZ), Sultana Bran Crunch (Australia/NZ)
  • Raisin Wheats
  • Rice Krispies/Rice Bubbles: Rice Krispies, Frosted Rice Krispies (Ricicles in the UK), Gluten Free Rice Krispies, Rice Bubbles, LCMs, Rice Krispies Cocoa (Canada only), Rice Crispies Multi-Grain Shapes, Rice Krispies Treats Cereal[12]
  • Rocky Mountain Chocolate Factory Chocolatey Almond cereal
  • Scooby-Doo cereal: Cinnamon Marshmallow Scooby-Doo! Cereal
  • Smart Start: Smart Start, Smart Start Soy Protein Cereal
  • Smorz
  • Special K: Special K, Special K low carb lifestyle, Special K Red Berries, Special K Vanilla Almond, Special K Honey & Almond (Australia), Special K Forest Berries (Australia), Special K Purple Berries (UK), Special K Light Muesli Mixed Berries & Apple (Australia/NZ), Special K Light Muesli Peach & Mango flavour (Australia/NZ), Special K Dark Chocolate (Belgium), Special K Milk Chocolate (Belgium), Special K Sustain (UK)
  • Spider-Man cereal: Spider-Man Spidey-Berry
  • SpongeBob SquarePants cereal
  • Start (UK)
  • Strawberry Pops (South Africa)
  • Sustain: Sustain, Sustain Selection
  • Tresor (Europe)
  • Variety
  • Vector (Canada only)
  • Yeast bites with honey
  • Kringelz (formerly known as ZimZ!): mini cinnamon-flavored spirals. Only sold in Germany and Austria[13][14]

Discontinued cereals and foods

  • Banana Bubbles
A banana-flavoured variation of Rice Krispies. First appeared in the UK in 1995, but discontinued shortly thereafter.
Sold in the UK for a limited period
  • Bart Simpson Peanut Butter Chocolate Crunch Cereal[16]
  • Bigg Mixx cereal[16]
  • Buzz Blasts (based on Buzz Lightyear from the Toy Story movies)[16]
  • C-3PO's cereal: Introduced in 1984 and inspired by the multi-lingual droid from Star Wars, the cereal called itself "a New (crunchy) Force at Breakfast" and was composed of "twin rings phased together for two crunches in every double-O". In other words, they were shaped like the digit 8. After severing the cereal's ties to Star Wars, the company renamed it Pro-Grain and promoted it with sports-oriented commercials.
  • Chocolate Mud & Bugs[16]
  • Cinnamon Crunch Crispix
  • Cinnamon Mini-Buns
  • Cocoa Hoots: Manufactured briefly in the early 1970s, this cereal resembled Cheerios but was chocolate-flavored. The mascot was a cartoon character named Newton the Owl, and one of its commercials featured a young Jodie Foster.
  • Coco Pops Strawss
  • Complete Oat Bran Flakes
  • Concentrate[17]
  • Corn Flakes with Instant Bananas[15]
  • Corn Soya cereal
  • Crunchy Loggs[16]
  • Double Dip Crunch[12]
  • Frosted Krispies
  • Frosted Rice: This was a combination of Frosted Flakes and Rice Krispies, using Rice Krispies with frosting on them. Tony Jr. was the brand's mascot.
  • Fruity Marshmallow Krispies
  • Golden Crackles
  • Golden Oatmeal Crunch (later revised to Golden Crunch)
  • Heartwise (which contained psyllium, an Indian-grown grain used as a laxative and cholesterol-reducer)[18]
  • Homer's Cinnamon Donut Cereal (based on The Simpsons TV cartoon)[16]
  • Kenmei Rice Bran cereal[19]
  • KOMBOs (orange, strawberry and chocolate flavors)[16][20]
  • Kream Krunch
  • Krumbles cereal:[21] Manufactured approximately from the 1920s to the mid 1960s; based on shreds of wheat but different from shredded wheat in texture. Unlike the latter, it tended to remain crisp in milk. In the Chicago area, Krumbles was available into the late 1960s. It was also high in fiber, although that attribute was not in vogue at the time.
  • Marshmallow Krispies (later revised to Fruity Marshmallow Krispies)[12]
  • Most
  • Mr. T's Muscle Crunch (1983–1985)
  • Nut & Honey Crunch[16]
  • OJ's ("All the Vitamin C of a 4-oz. Glass of Orange Juice")[22]
  • OKs cereal (early 1960s): Oat-based cereal physically resembling the competing brand Cheerios, with half the OKs shaped like letter O's and the other half shaped like K's, but did not taste like Cheerios. OKs originally featured Big Otis, a giant, burly Scotsman, on the box; this was replaced by the more familiar Yogi Bear.
  • Pep: Best remembered as the sponsor of the Superman radio serial.
  • Pokémon Cereal: A limited edition cereal that contained marshmallow shapes in the forms of Gen I Pokémon Pikachu, Oddish, Poliwhirl and Ditto.
  • Pop-Tarts Crunch[12]
  • Powerpuff Girls Cereal
  • Puffa Puffa Rice (late 1960s–early 1970s)
  • Raisin Squares[23]
  • Raisins Rice and Rye[24]
  • Razzle Dazzle Rice Krispies
  • Sugar Stars/Stars/All-Stars cereal
  • Strawberry Rice Krispies
  • Strawberry Splitz
  • 3 Point Pops[25]
  • Tony's Cinnamon Krunchers[16]
  • Triple Snack[20]
  • Woody Woodpecker cereal
  • Yogos (Berry, Mango, Strawberry, 72 Flavor Blast (Germany), Cookies and Cream, Tacos (Mexico))
  • Yogos Rollers

Marketing

Kellogg's Sans (typeface used by Kellogg's)

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.[26]

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 such as high-fructose corn syrup.[27]

Kellogg's was a major sponsor throughout the run of the hit CBS panel show What's My Line?[28] It and its associated products Frosted Flakes and Rice Krispies were also major sponsors for the PBS Kids children's animated series Dragon Tales.[29]

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.[30]

Children's premiums

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.[31] 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.[32]

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.[30] 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.

Mascots

Licensed brands have been omitted since the corresponding mascots would be obvious (e.g. Spider-Man is the mascot for Spider-Man Spidey-Berry).

Motorsports

Kellogg's made its first foray into auto racing between 1991 and 1992, 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 2-time Winston Cup Champion Terry Labonte from 1993 to 2006, the last 12 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 it then served as an associate sponsor for Carl Edwards' #99 car for Roush Fenway Racing.

Kellogg's placed Dale Earnhardt on Kellogg's Corn Flakes boxes for 1993 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.

Merchandising

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 microphone is used to play games and create voice commands for their computers. 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.

Controversies

California Proposition 37

Kellogg's has donated around US$2 million opposing California Proposition 37, a ballot initiative that, if enacted, would have required compulsory labeling of genetically engineered food products.[33]

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.[34]

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.[35][36]

Kellogg's offered consumers refunds in the meantime.[citation needed] 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.[citation needed]

2012 Cereal Recall

Kellogg's 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 varied in size from single-serving bowls to large 70-ounce cartons. Use-by dates printed on the recalled packages ranged from April 1, 2013 to September 21, 2013, and were accompanied by the letters KB, AP or FK.[37]

Advertising claims

We expect more from a great American company than making dubious claims—not once, but twice—that its cereals improve children's health...

—Jon Leibowitz, Chairman of the F.T.C.[38]

On June 3, 2010, Kellogg's was found to be making unsubstantiated and misleading claims in advertising their cereal products by the Federal Trade Commission (FTC).[38][39][40]

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."[40]

The FTC had previously found fault with Kellogg's claims that Frosted Mini-Wheats cereal improved kids' attentiveness by nearly 20%.[41]

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.[42] In July 2012, Britain banned the "Kellogg's" Special K advertisement due to its misleading information about calorific value and weight loss.[43]

Operations

The Trafford Park factory in Greater Manchester, England—Kellogg's European base since 1938.[5] The factory produces more cornflakes than any other Kellogg's factory in the world.[44]

See also

References

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  2. ^ a b "10 companies that control the world's food". MarketWatch. September 2, 2014.
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  4. ^ "Kellogg Company Fact Sheet (PDF)" (PDF). kelloggcompany.com. Retrieved April 24, 2014.
  5. ^ a b "Global brand, local values". Manchester Evening News. May 27, 2008.
  6. ^ Jeffrey Kaplan (May–June 2008). "The Gospel of Consumption". Retrieved June 25, 2010.
  7. ^ Kellogg Company FundingUniverse.com. Retrieved on 7-18-09.
  8. ^ Sellers, Patricia (August 29, 1988). "HOW KING KELLOGG BEAT THE BLAHS". Fortune. Retrieved June 10, 2015.
  9. ^ "Kellogg to buy Pringles for $2.7 billion". Reuters. February 15, 2012.
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  11. ^ "Murray® Cookies: "great tasting, wholesome cookie"".
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  13. ^ Kellogg's Austria
  14. ^ Kellogg's Germany
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  22. ^ "Chiller - Scary Good". fearnet.com.
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  28. ^ Robbins, David (April 29, 2014). "What's My Line?: A Treasure Trove". Retrieved December 25, 2014.
  29. ^ "CTW - Dragon Tales - Fun & Games! (see bottom-of-page information)". Archived from the original on June 20, 2000. Retrieved December 5, 2014.
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