Kellogg Company (K) is a large global food company known for its breakfast cereals and snacks such as Kellogg’s, Cheez-It, Pringles and Eggo waffles. The company manufactures product in 21 countries and has operations in more than 180 countries. In 2019, 42% of net sales came from outside the United States.
Kellogg reported $13.58 billion in top-line revenue in 2019, barely changed from the $13.55 billion posted in the previous year. Earnings came in at $960 million, compared with the $1.34 billion earned the previous year. The company attributed the decline to a one-off cash gain recorded in 2018, higher business and portfolio realignment charges, and the absence of results from the divestment of a cookies and snacks business.
In July 2019, Kellogg completed the $1.3 billion sale of cookie and snack brands to Ferrero International. This included Keebler, Mother’s, Famous Amos, Murray’s, Little Brownie Bakers and Stretch Island.
Kellogg is divided into four geographic segments: North America, Europe, Latin America and AMEA (Africa, Middle East and Asia). Its largest customer is Walmart (WMT), which accounted for 19% of sales in 2019.
Below are the top 7 brands owned by Kellogg:
The parent company’s flagship cereal products include All-Bran, Apple Jacks, Cocoa Krispies, Kellogg’s Corn Flakes, Corn Pops, Cracklin’ Oat Bran, Froot Loops, Kellogg’s Frosted Flakes, Frosted Mini-Wheats, Kellogg’s Raisin Bran, Rice Krispies and Special K. Pop-Tarts breakfast pastries are also a well-known part of the Kellogg’s product offering.
The Eggo Company is one of Kellogg’s most recognizable subsidiaries. The company has diversified the Eggo frozen waffle business by expanding into pancakes, french toast and breakfast sandwiches. Eggo dominates the market for frozen waffles, historically taking a 70% share. Eggo enjoyed a big branding boost after it was featured on the popular Netflix series Stranger Things.
In 2012, Kellogg acquired Pringles potato chips from Proctor & Gamble (PG) for $2.7 billion. At the time, Pringles had $1.5 billion in sales across more than 140 countries and was the second-largest player in the savory snacks business. The global presence was important for Kellogg, which had limited international reach. The acquisition nearly tripled the size of Kellogg’s international business. Pringles also helped Kellogg expand the snack food portion of the product portfolio.
Kashi is an organic breakfast cereal company with a focus on nutrition and ethical sourcing practices. Kellogg acquired the business in 2000 for $32 million. Since then, the Kashi offering has grown to include healthy meals, snack bars and waffles. The purchase complemented its acquisition of plant-based foods company Worthington Foods, which Kellogg bought for $307 million the year before. To further diversify its offering, Kashi in 2016 acquired Pure Organic, which makes vegan nutrition bars and fruit snacks.
Kellogg paid $600 million in 2017 to acquire Chicago Bar Company, makers of the RXBar line-up of protein bars. The acquisition helped Kellogg expand further into healthier snack options. The bars are made with egg whites, fruits and nuts and provide 12 grams of protein in 210-220 calories. The segment contributed $186 million in sales in 2018.
Egyptian Companies: Bisco Misr and Mass Food Group
Kellogg made two noteworthy acquisitions in Egypt in 2015. It acquired a majority stake in Bisco Misr, the largest maker of packaged biscuits in Egypt, for $125 million. The acquisition added $54 million in sales that year. Kellogg followed up with the purchase of Mass Foods, Egypt’s leading cereal company, for $46 million. Mass Foods contributed $4 million in additional sales in 2015.