Canadian Manufacturing

Kellogg strikes joint venture deal to bring cereals, snacks to China

by The Associated Press   

Manufacturing Food & Beverage Chinese market

Breakfast giant says it has formed a deal with Wilmar International

NEW YORK—Kellogg wants more people in China to wake up to a bowl of its cereal.

The maker of Frosted Flakes, Pop-Tarts and Eggo waffles says that it formed a joint venture to sell its cereals and snacks in the country.

The breakfast giant says the deal will tap Wilmar International’s infrastructure and local expertise in China.

Wilmar is a unit of Yihai Kerry Investments Co. Ltd.


The Battle Creek, Mich.-based company also plans to sell its Pringles chips in China.

Kellogg acquired Pringles from Procter & Gamble Co. earlier this year to help it expand overseas.

Kellogg Co. currently gets most of its revenue from North America, where growth in the packaged food industry has been relatively weak.

But like other food companies, Kellogg is increasingly looking to tap rapidly growing middle-class populations in developing markets for growth.

Kellogg notes that China is expected to be the largest food and beverage market within the next five years.

The company says cereal consumption is growing as more people drink milk.

The Pringles acquisition in February catapulted Kellogg to the world’s second-biggest salty snack maker, after PepsiCo Inc.’s Frito-Lay.


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