Baking&Snack - September 2012 - 14

newsfront
Pringles sparks Kellogg snack boost
Even while describing The Kellogg Company, Battle Creek, MI, as a “global cereal and a US snack company,” John Bryant, president and CEO of Kellogg, said the addition of Pringles has set the company up well to build a global snack business. During a recent conference call with analysts to discuss second-quarter financials, Mr. Bryant provided an update on the integration of Pringles, which the company acquired from Cincinnati, OH-based Procter & Gamble Co. in late May for $2.7 billion. “The integration is progressing well,” Mr. Bryant said. “Just as a reminder, this was a carve out, not a straight acquisition, and was far more complicated as a result. We’re pleased the transition is going so smoothly. Our Pringles team and the existing Kellogg teams are working very well together, and we anticipate that we will be able to Pringles’ integration into The Kellogg Company contributed 3.5 percentage points to overall reported sales growth in the second quarter of this year.
Kellogg Company

discontinue our transition services with Procter & Gamble on schedule.” Mr. Bryant said Kellogg now has improved visibility into Pringles operations and expects ongoing annual synergies to be in the range of $50 million to $75 million. “We are seeing good sales early in the third quarter and are starting to leverage Pringles through cross-display and marketing activities,” he said. “It is also important to note that our customers around the world have a lot of confidence in the brand and, just like us, are optimistic regarding its potential.” During the second quarter, Kellogg said Pringles contributed about 3.5 percentage points to overall re-

ported sales growth. The company attributed some of the growth to the introduction of Pringles with more flavors. “This was a simple idea, but it is one that highlights the opportunities we have to drive this business,” said Todd Penegor, president of US Snacks. “We also have a lot of really great brand-building ideas, and we have savory snack brands that complement each other. As you might imagine, we are already doing co-promotions with Pringles and Cheez-It, and see a lot more potential to do this kind of thing as we look across the portfolio.” Internationally, Pringles has performed well in Europe and also is making a mark in Asia-Pacific and Latin America, Mr. Bryant said. “The beauty of the Pringles acquisition is it creates a snacking capability to add to our international business to help transform our international business from largely a cereal business to a cereal and snacks business,” he said. — Eric Schroeder, managing editor, Milling & Baking News

Pepperidge Farm innovates for 75th anniversary
Pepperidge Farm, Norwalk, CT, celebrated 75 years in business this year with new products and the opening of the company’s Innovation Center. Margaret Rudkin founded Pepperidge Farm in 1937 with a loaf of bread she baked to address her son’s allergies. Two years after selling her first loaf of bread, Ms. Rudkin’s new company had sold 1 million loaves. Today, the company, acquired by Campbell Soup Co. in 1961, produces 206 million loaves of bread, 558 million Milano cookies and 142 billion Goldfish crackers annually. In 2011, sales totaled more than $2 billion. “Margaret Rudkin was famous for asking employees, ‘What’s next?’ to make sure the business was always moving ahead, and that is still our philosophy today,” said Irene Chang Britt, president, Pepperidge Farm. “We’re committed to keep introducing products that hold a unique place in people’s lives — from Goldfish crackers and Jingos! snack crackers are one of the products Pepperidge Farm launches this fall to celebrate the company’s 75th anniversary.
Pepperidge Farm

the special connection they foster between moms and kids to Milano cookies and the treasured moments of enjoyment they create. We will continue to build on the company’s sustained success.” Continuing a tradition of innovation, Pepperidge Farm observed its anniversary by rolling out 35 new products this fall. These include Simply Natural breads, Goldfish bread, Caramel Apple Swirl bread, Jingos! snack crackers, Milano Slices Salted Pretzel cookies, Milano Melts, Soft Baked cookies, Milano Cookie Cake and Chocolate Chunk Cookie Cake. The new Innovation Center occupies 34,000 sq ft at the company’s headquarters. The center, which opened this month, houses a pilot plant and culinary kitchens to further fuel the company’s research and new product development.

/ Baking & Snack / September 2012

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Baking&Snack - September 2012

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