|By PR Newswire||
|September 24, 2012 06:30 AM EDT||
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.
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