Kellogg
Industry: Food Processing

Kellogg Company and its subsidiaries are engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods such as cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts and ice cream cones. These products were, as of December 28, 2002, manufactured by the Company in 19 countries and marketed in more than 180 countries. The Company's cereal products are generally marketed under the Kellogg's name and are sold principally to the grocery trade through direct sales forces for resale to consumers. The Company also markets cookies, crackers and other convenience foods, under brands such as Kellogg's, Keebler, Cheez-It, Murray and Famous Amos, to supermarkets in the United States through a direct store door delivery system, although other distribution methods are also used.

Business Summary
Kellogg Company is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. The principal products of the Company are ready-to-eat cereals and convenience foods, such as cookies, crackers, toaster pastries, cereal bars, frozen waffles and meat alternatives. These products were, as of January 1, 2005, manufactured by the Company in 17 countries and marketed in more than 180 countries. The Company's cereal products are generally marketed under the Kellogg's name and are sold principally to the grocery trade through direct sales forces for resale to consumers. Kellogg Company uses broker and distribution arrangements for certain products. Kellogg Company also markets cookies, crackers and other convenience foods under brands, such as Kellogg's, Keebler, Cheez-It, Murray, Austin and Famous Amos, to supermarkets in the United States through a direct store-door (DSD) delivery system, although other distribution methods are also used.

Financial Summary
K is engaged in the manufacture and marketing of ready-to-eat cereal and other grain-based convenience food products on a worldwide basis. For the six months ended 7/02/05, net sales rose 8% to $5.16B. Net income rose 12% to $513.7M. Revenues reflect strong sales growth in the North America Retail Cereal, Retail Snacks, and Frozen and Specialty Channels businesses. Net income also reflects improved operating margins and a lower effective tax rate.