KELOGGS

History
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 Christian denomination. 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. 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 Salad 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 under spending 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 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 made its largest acquisition, the Keebler Company. Over the years it has also gone on to acquire Morningstar Farms and Kashidivisions or subsidiaries. Kellogg also owns the Bear Naked, Natural Touch, Cheez-It, Murray, Austin, Famous Amos, Gardenburger (acquired 2007) and Plantation brands.

In 2012, Kellogg's elevated themselves to be the second largest snack food company after Pepsico by acquiring the Pringles potato crisps business from Procter & Gamble for $2.7 billion in a cash deal.

Kelloggs Timeline
1894 W.K. Kellogg develops first corn flake and starts to commercialise cereal products for patients at the Battle Creek Sanatorium. 1906 The Battle Creek Toasted Corn Flake Company is founded. 1914 Kellogg's cereals are sold in Canada. 1916 Kellogg's All-Bran is first made and sold. 1922 Battle Creek Toasted Corn Flake Company becomes Kellogg Company, and its cereals are sold in the United Kingdom (UK).

1923 Kellogg's cereals are sold in South Africa for the first time. 1924 Kellogg opens offices in the UK and Australia. 1928 Rice Krispies are invented. 1930 The W.K. Kellogg Foundation a philanthropic organisation is founded. 1933 The characters Snap!, Crackle! and Pop! appear for the first time in Rice Krispiesadvertisements. 1938 Kellogg opens its first factory in Europe (Manchester, UK).

1948 A manufacturing plant is opened in Springs, South Africa. 1951 W.K. Kellogg dies at the age of 91. 1952 Kellogg's introduces Frosties, the product on which Tony the Tiger appears. 1955 Kellogg's introduces Special K, the first high-protein cereal fortified with seven vitamins and iron. 1986 Kellogg opens new headquarters in Battle Creek, Michigan (USA). 1994 Kellogg opens a manufacturing plant in Bombay, India. 1999 Kellogg acquires the Worthington Foods group a vegetarian foods producer.

2001 Kellogg acquires the Keebler Foods Company, the second largest producer of biscuits and crackers in the USA. 2005 Kellogg's products are manufactured in 17 different countries and marketed in more than 180 countries around the world. 2006 Kellogg's launches Optivita, a new brand which contains betaglucan, intended to help control cholesterol levels. 2007 Kellogg is named as one of 'The World's Most Ethical Companies' by Ethisphere magazine.

In South Africa, Kellogg's is judged one of the top ten most trusted brands in the local Brand Trust Index survey, and Kellogg's South Africa receives a Guinness World Record for the world's largest bowl of cereal. 2008 Kellogg acquires the United Bakers Group, a leading Russian producer of crackers, biscuits and breakfast cereals. Kellogg also acquires Navigable Foods a biscuit manufacturer in China

Corporate social responsibility

Announced a 15 percent sugar reduction program for our popular Coco Pops cereals in the United Kingdom. Lowered sodium in select popular cereals in several markets, including Europe and Canada, as part of an overall product reformulation initiative that has reduced the average amount of sodium per serving in our ready-to-eat cereals in our core markets by 13 percent from 2007 through 2010. In Europe they lowered sodium by 30 percent in Rice Krispies and Kellogg's Corn Flakes, thereby simultaneously lowering the sodium in other popular cereals (such as Crunchy Nut, Frosties and Coco Pops) that use the formulas for Rice Krispies and Kellogg's Corn Flakes as a base. Participated in the Healthy Weight Commitment Foundation (a coalition of 100+ food companies and other stakeholders), which pledged to collectively remove 1.5 trillion calories from members U.S. products by the end of 2015.

Joined with leading food and beverage manufacturers to develop a new front-of-package nutrition labeling system in the United States, supported through an industry-led multimillion-dollar consumer education campaign. Joined with leading food manufacturers in Canada to partner with Health Canada on a nutrition labeling education initiative. Further embedded our Global Supplier Code of Conduct into our supplier relationships. Our Responsible Sourcing Framework focuses on four key areas: business ethics, labor standards, employee safety and health, and the environment.

COMMUNITY

Contributed more than $13 million in cash, including brand philosophy, and $19 million in products to nonprofits and charitable organizations around the world. Continued to donate food to food banks and programs around the world. Contributed to breakfast programs that provided millions of morning meals to schoolchildren around the globe. Supported a downtown revitalization project in our headquarters city of Battle Creek, Mich. Provided cash and/or product donations to assist with disaster relief efforts in Japan, Haiti, Chile, Australia and other regions.

Kelloggs Corporate Citizenship Fund has provided another grant of $350,000 to Action for Healthy Kids to help increase breakfast participation during the 2010-11 academic year at 91 schools in 20 states .Kellogg contributed $155,000 to help build a Rafa Mrquez Center in Zamora, Michoacn, Mexico In South Africa, for the second consecutive year, Kellogg sponsored Health of the Nation, a sports challenge that encouraged physically active lifestyles in disadvantaged communities. In Ireland, we followed the success of a 2009 U.S. initiative with a competition to renovate playing fields for children who participate in sports through community clubs and schools. In March 2011, we announced a $500,000 donation to the American Red Cross to support disaster relief efforts in Japan following the massive earthquake and tsunami. The contribution included equal amounts of cash and product to support the efforts of the Japanese Red Cross Society.

ENVIRONMENT

Made steady gains toward our energy, greenhouse gas (GHG) and water goals. Kellogg has completed carbon footprint assessments for several products in different countries and across different product categories. This work confirmed that more than half of our

products lifecycle carbon emissions occur in the raw materials supply chain.

Conducted a water risk assessment for all Kellogg plants worldwide. The water-reduction performanceshown in the charts belowis the result of myriad water-efficiency efforts at kellogg facilities worldwide. The cereal plant in South Africa, for example, achieved a 12 percent reduction in water use in 2010, compared to 2009. This progress was achieved by changing from wet to dry cleaning methods during their cleaning shutdowns.

Were among the first companies globally to submit water use data to Water Disclosure, a new global data repository. Taloja plant in India reduced its food and packaging waste in 2010 by 67 percent. They achieved this success by first collecting thorough baseline waste data and analyzing areas for improvement, and then implementing waste-reducing process enhancements throughout the plant. The effort had the added benefits of decreasing facility downtime by 40 percent (due to better preventative maintenance) and saving the company nearly $1 million overall.

Made sustainability commitments (together with other members of the Consumer Goods Forum) relating to carbon measurement, refrigeration, packaging and helping to achieve net-zero deforestation. Expanded our engagement with suppliers on issues relating to sustainable agriculture. Updated our global standardsand introduced several new onesrelating to environmental performance. Made important packaging improvements, particularly in our Snacks business. Implemented a new environmental and safety management system at Kellogg sites globally. Encourage employee learning and communication about environmental sustainability. Educate employees about why environmental sustainability is important to our business. Help employees understand how environmental issues are connected to their communities. Motivate employees to become change agents by decreasing their impact on the environment through the seemingly small choices they make every day. GOALS FOR 2015

Reduce the energy use, GHG emissions and water use by 15-20 percent, using 2005 as a baseline.

Continue to reduce our waste sent to landfill beyond the 51 percent already reduced since 2005.

WORKPLACE

Significantly increased the size of our corporate safety staff in North America and also added safety professionals in other global regions. Refreshed our global workforce safety policies and implemented a strict mobile electronics use policy for our U.S. sales employees who drive Kellogg-owned vehicles. Established a new total health management program for all employees. Introduced a new diversity training program in Latin America that focuses on the inclusion of workers from all economic backgrounds. Were named one of the 2011 Best Places to Work for LGBT Equality by the Human Rights Campaign, the leading lesbian, gay, bisexual and transgender civil rights organization in the United States. Contributed nearly $350,000 to diversity-related organizations, primarily to support scholarship programs that include diversity as a criterion. Launched a new leadership development program.