...® Kellogg Company // Form 10-K For Fiscal Year 2012 (Ended December 29, 2012) This page intentionally left blank UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Í ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 29, 2012 ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From To Commission file number 1-4171 Kellogg Company (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of Incorporation or organization) 38-0710690 (I.R.S. Employer Identification No.) One Kellogg Square Battle Creek, Michigan 49016-3599 (Address of Principal Executive Offices) Registrant’s telephone number: (269) 961-2000 Securities registered pursuant to Section 12(b) of the Securities Act: Title of each class: Common Stock, $.25 par value per share Name of each exchange on which registered: New York Stock Exchange Securities registered pursuant to Section 12(g) of the Securities Act: None Indicate by a check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes Í No ‘ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act. Yes ‘ No Í Note — Checking the box above will not relieve any registrant required to file reports pursuant to...
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...Introduction Decision making is a vital part of business. But without having the appropriate source of information it can’t be done properly. One can learn about various fields of business while taking decision. Four procedures of accurate information- gathering data, string data, creating useful information, and presenting them can also be learnt. Currently all the successful organizations use IT based data analysis. This type of data analysis has a lot of advantages. Kellogg India is an US based company focused mainly in cereal products. After the reconstruction of Indian market, it decided to expand its operation in this side of this world. It invested 35 million pound and implemented its western policy. Now after decade’s Ups and Downs, Kellogg is keen to control the lion’s share of Indian domestic market and wants to be the only player. While Kellogg still holds more than 60% share in India's Rs 700-crore organized breakfast cereal market and increased its overall sales 30% in FY12, it is now facing increased competition with multinational and home-grown players including PepsiCo, Marico, GlaxoSmithKline and Dr Oater entering the oats and muesli segments(New York Times 1998). That’s why now it’s going to take some vital decision that will reshape its market strategy. The author can examine a variety of data Sources. He can use any type of data and any type of method and also will use all the necessary tools to represent this work. However Author will clarify the whole...
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...Background summary: Kellogg Company is a manufacturer of cereal and convenience foods, such as cereal bars, fruit-flavored snacks, frozen waffles, cookies, and crackers. Kellogg manufactures its products in 17 countries and sells its products in over a hundred countries. The sales of core products, like cereal, has declined over time in major markets like the United States and Europe. Cereal was a convenient food for breakfast, but now consumers do not have time to “sit down with a bowl, milk, and spoon.” Snacks have become a core product for the company. Kellogg acquired Pringles to expand its market share in international snacks. Kellogg’s investors were pleased with the acquisition. Mr. Bryant paid for Pringles acquisition at a high price of $2.7 billion versus $950 million of Diamond’s deal, because he speculated Pringles would help Kellogg increase profits. Kellogg has faced intense competition from GM & Ralston, Quaker, Post & Nabisco, etc.. Knowledgeable consumers and nutritionists criticized the high caloric content and use too much of salt in Kellogg’s cereals. Mr. Robert Dickerson, Kellogg’s consumer research analyst, believed that the company should refresh its entire portfolio to attract consumers by changing its image on packaging and rebranding the products. Problem statement: Kraft is refocusing their production toward snacks, and Kellogg can face intense competition. Kellogg’s core market sales, profit, and share price have declined. Kellogg must find a solution...
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...Equity Research Report , October, 31, 2009 Bobby Kelley , Kellogg Company K: Bobby's Company Report - (K-NYSE) HOLD OUTLOOK Kellogg Company, the leader in ready-to-eat cereals, has successfully executed the Volume to Value and Manage for Cash strategies. In 2006, management adopted additional programs, namely, Sustainable Growth and People Passion and Pride . By focusing on brand building and profitability, Kellogg is reporting consistent sales and earnings growth, reducing debt, and repurchasing shares. However, recent commodity inflation and increased investment in advertising expenditures have pressured the gross and operating margins. Current Recommendation Hold Current Price (10/30/09) Twelve-Month Target Price $51.54 $55.13 SUMMARY DATA 52-Week High 52-Week Low One-Year Return (%) Beta Average Daily Volume (sh) Shares Outstanding (mil) Market Capitalization ($mil) Short Interest Ratio (days) Institutional Ownership (%) Insider Ownership (%) Annual Cash Dividend Dividend Yield (%) 5-Yr. Historical Growth Rates Sales (%) Earnings Per Share (%) Dividend (%) P/E using TTM EPS P/E using 2009 Estimate P/E using 2010 Estimate $53.39 $35.64 17.54 0.51 3,909,678 383 $19,731 3.25 82 2 $1.50 2.91 7.4 8.0 7.0 16.5 16.5 13.8 Risk Level Type of Stock Industry Low Large-Growth Food-Misc./Diversified BOBBY'S ESTIMATES Revenue (in millions of $) Q1 (Mar) 2007 2008 2009 2010 2,963 A 3,258 A 3,169 A 3,366 E Q2 (Jun) 3,015 A 3,343 A 3,229 A Q3 (Sep)...
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...Kellogg vs Nestle Kellogg Company Kellogg’s Company (“Kellogg’s”) was founded in 1906 and incorporated in Delaware in 1922. Kellogg’s is a publicly traded company on the New York Stock Exchange under the ticker symbol K. Kellogg’s is engaged in the manufacturing and marketing of ready-to-eat cereal and convenience foods. Kellogg’s manufactures these products in 20 countries and markets them in over 180 countries. Major brand names trademarked by Kellogg’s include: All-Bran, Apple Jacks, Cheez-It, Cocoa Krispies, Kellogg’s Corn Flakes, Corn Pops, Cracklin’ Oat Bran, Eggo, Froot Loops, Kellogg’s Frosted Flakes, Keebler, Frosted Mini-Wheats, Pringles, Pops, Kellogg’s Raisin Bran, Rice Krispies, and Rice Krispies Treats (Kellogg’s 10-K, 2014). Kellogg’s largest customer is Wal-Mart Stores, Inc. (“Wal-Mart”) which accounted for approximately 21 percent of consolidated net sales for the fiscal year ended 2014. As of January 3, 2015, Kellogg’s had approximately 29,790 employees (Kellogg’s 10-K, 2014). Name of corporation: K – Kellogg Company Date/period of the report: Fiscal Year End: January 3, 2015 Cash dividends per share: 2014 - $1.90 per Common Share; 2013 - $1.80 per Common Share Current Ratio: 2014 – 0.77 2013 – 0.85 Common Stock Shares issued and outstanding: As of January 31, 2015, 356,571,864 shares of the common stock of the registrant were issued and outstanding. Common stock, $.25 par value, 1,000,000,000 shares authorized Issued: 420,125,937...
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...Kellogg's Indian Experience Details Source: http://www.icmrindia.org/free%20resources/casestudies/Marketing%20freecasestudyp1.htm Themes: MNCs in India Period : 1995-2001 Organization : Kellogg India Ltd Pub Date : 2001 Countries : India Industry : Cereals and Convenience foods Kellogg's Indian Experience: A Failed Launch In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $ 30 million. The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s. | Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite...
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...Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Froot Loops, Corn Flakes, Frosted Flakes, Rice Krispies, Special K, Cocoa Krispies, Keebler, Pringles, Pop-Tarts, Kashi, Cheez-It, Eggo, Nutri-Grain, Morningstar Farms, and many more. Kellogg's stated purpose is "Nourishing families so they can flourish and thrive." 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 Church. 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. W.K. Kellogg stated that he did this so that an additional shift of workers would be employed in an effort to support people through the depression era. 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...
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...Introduction of the Product: Special K Special K is a lightly toasted breakfast cereal manufactured by the Kellogg Company. The cereal was introduced to the United States in 1956. It is made primarily from rice and wheat. The core target for Special K is usually women from 25 to 49 years. First and foremost the brand is supposed to speak to weight conscious women, who desire to attain a slimmer shape either for a healthy lifestyle or for an occasion. It is marketed primarily as a low-fat cereal that can be eaten to help one lose weight. It frequently has give-away offers for various health and fitness products or contains dieting information on the back of the box. It is also generally targeted at adults, rather than children. It is a multigrain cereal of oats, corn and wheat and flakes balanced with natural carbohydrates and vitamins, which enriches the daily diet with protein and fiber. The Special K line was introduced as a weight management product that helps reducing weight in an easy and faster way. The Special K line is available in these eight main flavors in Spain: * Special K Classic * Special K Chocolate Negro * Special K Chocolate con Leche * Special K Frutas Rojas * Special K Avena Integral con Miel Special K comes in 360g and 630g packs. All items in the product line are labeled according to Kellogg’s and ‘Special K’s corporate designs. Hence it is easy to recognize in-store and by this the shopping process is eased The diet that Special K advocates...
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...The Kellogg Company Optimizes Production, Inventory, and Distribution Gerald Brown gbrown@nps.navy.mil Operations Research Department Naval Postgraduate School Monterey, California 93943 Kellogg Company, P.O. Box 3599 Battle Creek, Michigan 49017–3599 Kellogg Company, P.O. Box 3423 Battle Creek, Michigan 49016–3423 Operations Research Department Naval Postgraduate School Joseph Keegan joe.keegan@kellogg.com Brian Vigus brian.vigus@kellogg.com Kevin Wood kwood@nps.navy.mil For over a decade, the Kellogg Company has used its planning system (KPS), a large-scale, multiperiod linear program, to guide production and distribution decisions for its cereal and convenience foods business. An operational version of KPS, at a weekly level of detail, helps determine where products are produced and how finished products and in-process products are shipped between plants and distribution centers. A tactical version of KPS, at a monthly level of detail, helps to establish plant budgets and make capacity-expansion and consolidation decisions. Operational KPS reduced production, inventory, and distribution costs by an estimated $4.5 million in 1995. Tactical KPS recently guided a consolidation of production capacity with a projected savings of $35 to $40 million per year. T he Kellogg Company has been using a large-scale linear program, the Kellogg Planning System (KPS), for more than a decade to guide its operational (weekly), production, inventory, and distribution decisions...
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...Abstract Kellogg’s Company The Kellogg’s Company has several different kinds of foods. They have breakfast foods as well as crackers snacks, vegetarian foods and organic foods as well as frozen foods. The Kellogg’s Company is worldwide. A lot of people love the Kellogg’s food lines. These foods are good if you are running late for school, work or an appointment; you can just grab them and go. COMPANY Kellogg’s Company Looking into the year-over-year statements I have used the Kellogg’s Company annual statements for three years and December 31 2007 Reclassified USD, January 3 2009, January 2 2010 and January 1 2011. The year-over-year change had very little change to it. Income Statement: The revenue for the four years was; Revenue has gone down December 29, 2007 11,776.0 January 3, 2009 12,822.0 January 2, 2010 12,575.0 January 1, 2011 12,397.0 Selling General and Admin Expenses for the four years was; Selling General and Admin has gone down December 29, 2007 3,234.0 January 3, 2009 3,409.0 January 2, 2010 3,349.0 COMPANY Kellogg’s Company January 1, 2011 3,258.0 Net income for the four years was; Net Income has gone down but then it went back up December 29, 2007 1,103.0 January 3, 2009 1,148.0 January 2, 2010 1,212.0 January 1, 2011 1,247.0 Balance Sheet: The Balance Sheet for the three years and the December Reclassified...
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...Influence of stakeholders on business objectives Owners/stakeholders have a big say in how the aims of the business are decided, but other groups also have an influence over decision making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits. Managers influence a business everyday by the decisions they make. This could include what products and services to offer and who to hire or fire. Managers implement company policy and formulate strategy which affects the running and profit-making ability of a business. Employees can influence the success of an organisation by their productivity and efficiency in the job, duties and tasks they do everyday. They can also resort to industrial action if they disagree with working conditions, pay or company policies. This could take the form of work to rule, bans on overtime, sit-ins or in extreme cases withdrawal of labour (a strike). Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts for bulk orders or loyal customers. Government can influence a firm by introducing new laws that can affect operations such as the National...
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...Introduction: U.S based Kellogg’s is a world leader and the most successful cereal manufacturer in the world. Kellogg’s entered India in 1994 and it took them a good 15 years for stability in the Indian markets facing initial problems and trying to change the Indian consumer’s mentality about the morning breakfast http://www.kelloggs.co.uk/company/history/howitallbegan.aspx About the assignment: (Refer Appendix 1) Growth strategy by Kellogg’s in India: Kellogg’s were successful to create a need for the product which was never a necessity for an Indian household. We will now discuss how the company managed to establish themselves with a dominant market share in the Indian market. 1.) Ansoff Matrix Ansoff Matrix was introduced to address the corporate strategy of the future. It delivers the perspective of growth options on the horizontal level and introduces the possibility of diversification. (Kotler, Berger & Bickhoff, 2010) http://www.ansoffmatrix.com/ Market Development: Market Development is capturing new markets with your existing products or services. (Lester, 2009) In a new market or to a new consumer, it will be a quiet a task to have them to believe in your product on launching (Meldrum, M & McDonald, M., 2007) especially, when a country is so fond of their traditional recipes. With the help of extensive market research Kellogg’s found out that there was no breakfast cereal trend in the Indian market. Hence they launched their flagship...
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...Will Keith Kellogg was born on April 7, 1860 in Michigan. Will grew up as a Seven-day Adventist which means that he preaches about the imminent return of Christ to Earth and he considers Sunday as the Sabbath day. Will dropped out of school at the age of fourteen and went to work for his fathers owned broom manufacturing company. Once Will got in to college he started working for his older brother John’s Sanitarium. The Sanitarium was a lifestyle that relied on fresh air, a vegetarian diet, and plenty of exercise. Over time the Sanitarium started to get fame so John hired Will as business manager. John had many ideas about foods and diets and he believed that the key to longevity was a diet rich in nut proteins (E.W.B., 2008). In 1877 Will and John came up with a...
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...1.0 Introduction 1.1 Background Kellogg Company (often referred to as Kellogg or Kellogg's in its corporate logo, or even more formally as Kellogg's of Battle Creek), with 2011 sales revenue of nearly $13 billion, is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi. Kellogg products are manufactured in 18 countries and marketed in more than 180 countries around the world. Its global headquarters are in Battle Creek, Michigan, USA. Kellogg trades under the ticker symbol NYSE: K. When preparing a strategy for success, a business needs to be clear about what it wants to achieve. It needs to know how it is going to turn its desires into reality in the face of intense competition. Setting clear and specific aims and objectives is vital for a business to compete. However, a business must also be aware of why it is different to others in the same market. This case study looks at the combination of these elements and shows how Kellogg prepared a successful strategy by setting aims and objectives linked to its unique brand. One of the most powerful tools that organizations use is branding. A brand is a name, design, symbol or...
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