BATTLE CREEK, Mich. and
SINGAPORE, Sept. 24, 2012 /PRNewswire/ -- Kellogg Company
(NYSE: K) and Wilmar International Limited (SGX: WIL) today
announced a 50:50 joint venture between Kellogg and Wilmar for the
manufacture, sale and distribution of cereal, wholesome snacks and
savory snacks in China. Wilmar's
wholly-owned subsidiary in China,
Yihai Kerry Investments Co., Ltd, will participate in the joint
venture.
Wilmar will contribute infrastructure, supply chain scale, an
extensive sales and distribution network in China, as well as local China market expertise to the joint venture.
Kellogg will contribute a portfolio of globally recognized brands
and products, along with deep cereal and snacks category expertise.
The Joint Venture will use the Kellogg's® and
Pringles® brands. Together, Kellogg and Wilmar will leverage
this complementary expertise to maximize marketing and
manufacturing synergies.
China is expected to become the
largest food and beverage market globally within the next five
years, driven both by the growth of a middle class consumer base in
large cities and an increased desire for a wide range of packaged
and branded foods. Cereal consumption is currently being driven by
rapid growth in milk consumption, along with consumers' desire for
healthy and convenient breakfast foods. Snack foods also represent
a very large growth opportunity.
"China's snack-food market
alone is expected to reach an estimated $12
billion by year-end, up 44 percent from 2008," said
John Bryant, Kellogg Company's
president and chief executive officer. "To capture this growth, we
will leverage the key strengths Kellogg and Wilmar bring to the
partnership – the globally recognized Kellogg's® and
Pringles® brands and deep category knowledge; scale and
local market experience; and our mutual commitment to
consumer-focused innovation.
"This joint venture positions our China business for growth and fundamentally
changes our game in China. Our
organizations have developed a strong working relationship and
trust. I am pleased to be working together with Kuok Khoon Hong and his talented team, and have
every confidence that our partnership will be a long-term success,"
concluded Bryant.
Wilmar's Chairman and Chief Executive Officer, Kuok Khoon Hong, added, "This joint venture with
Kellogg will complement our existing Consumer Product business and
leverage on our extensive distribution network and support
infrastructure in China. With our joint strength and shared
vision, I am confident that we will be able to develop a leading
cereal and snacks business together."
The joint venture company will be headquartered in Shanghai, China.
Launch of the joint venture is subject to customary conditions,
including regulatory approvals by the Chinese government and
anti-trust approvals.
About Kellogg Company
Driven to enrich and delight the world through foods and
brands that matter, Kellogg Company (NYSE: K) is the world's
leading producer of cereal, second largest producer of cookies and
crackers and - through the May 2012
acquisition of the iconic Pringles® business - the world's
second largest savory snacks company. In addition, Kellogg is a
leading producer of frozen foods. Every day, our well-loved brands
- produced in 18 countries and marketed in more than 180 countries
- nourish families so they can flourish and thrive. With 2011 sales
of more than $13 billion, these
brands include Cheez-It®, Coco Pops®, Corn
Flakes®, Eggo®, Frosted Flakes®, Kashi®,
Keebler®, Kellogg's®, Mini-Wheats®,
Pop-Tarts®, Pringles, Rice Krispies®,
Special K®, and many more. To learn more about Kellogg
Company, including our corporate responsibility initiatives and
rich heritage, please visit www.kelloggcompany.com.
About Wilmar
Wilmar International Limited, founded in 1991 and
headquartered in Singapore, is
today Asia's leading agribusiness
group. Wilmar is ranked amongst the largest listed companies by
market capitalisation on the Singapore Exchange.
Wilmar's business activities include oil palm cultivation,
oilseeds crushing, edible oils refining, sugar milling and
refining, specialty fats, oleochemicals, and grains processing. At
the core of Wilmar's strategy is a resilient integrated
agribusiness model that encompasses the entire value chain of the
agricultural commodity processing business, from origination and
processing to branding, merchandising and distribution of a wide
range of agricultural products. It has over 400 manufacturing
plants and an extensive distribution network covering China, India,
Indonesia and some 50 other
countries. The Group is backed by a multinational workforce of
approximately 90,000 people.
Wilmar's portfolio of high quality processed agricultural
products is the preferred choice of the food manufacturing
industry, as well as industrial and consumer food catering
businesses. Its consumer packed products occupy a leading share in
its targeted markets. Through scale, integration and the logistical
advantages of its business model, Wilmar is able to extract margins
at every step of the value chain, thereby reaping operational
synergies and cost efficiencies. Wilmar remains a firm advocate of
sustainable growth and is committed to its role as a responsible
corporate citizen.
SOURCE Kellogg Company