Kellogg forms joint venture to enter China

September 25, 2012

Kellogg Co. and Wilmar International Ltd. have announced a venture 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, a 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’s snack-food market alone is expected to reach an estimated $12 billion by year-end, up 44% from 2008,” said John Bryant, Kellogg’s President and CEO. “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.

The joint venture company will be headquartered in Shanghai, China.

Press release