Milling & Baking News - February 23, 2010 - 16

Business 

Bryant of Kellogg sees particular
promise in Turkey and Russia

business as well, Mr. Bryant said.
Although Russia is a highly developed cookie market, Mr. Bryant
said most cookies in the country are
Kellogg boosted its presence in sold in large boxes in open markets.
BOCA RATON, FLA. - Emerging
markets - specifically Turkey, Rus- Russia in 2008 when it acquired Kellogg's plans call for trying to get
sia and China - stand as impor- United Bakers, which is the larg- consumers to migrate away from
tant gateways for future growth at est cracker maker in Russia and the buying in bulk and instead gravitate
Kellogg Co., company executives No. 2 cereal and No. 2 cookie com- toward buying branded cookies. He
explained Feb. 17 at the Consumer pany. Mr. Bryant said Kellogg sees said that while the company is havAnalyst Group of New York confer- great potential in what is becoming ing some success on the transition,
Kellogg does not anticipate dramata large cereal category.
ence in Boca Raton.
"The reason that Russia has that ically swinging the pendulum on
Cereal, which accounts for more
than 50% of Kellogg's global sales, great potential for us is because consumers' buying habits.
Another important emerging
may provide some of the biggest there is currently a very large hot
opportunities for growth in interna- cereal market in Russia called market mentioned by Mr. Bryant
was China. While optimistional markets.
tic that China will provide a
In Turkey, a joint venture
large cereal and healthy snack
agreed to with Ulker in 2005
business, he said the process
has helped Kellogg raise its ceof getting there will take
real market share in the country
much longer than in Russia
to 28% from 2% in four years
or Turkey. Currently, China
time, said John Bryant, chief
is about a $30 million to $40
operating officer. The growth
million business for Kellogg,
has come at a time when the
he said.
overall category has grown
"China is a little bit more
strong double digits, and the
complicated from a cereal
prospects for future growth are
perspective than Russia," he
good, he added.
said. "There is not the same
"Turkey, we believe, could
hot cereal breakfast consumpbe a very exciting cereal martion habit, so it's harder to
ket long term," Mr. Bryant said.
move the core habit in China
"It's a country of roughly 70
to cold cereal. It will take us a
million people, so (there is a) Kellogg hopes to displace kasha in Russia with readyrelatively large population base, to-eat breakfast cereal as the primary breakfast longer period of time.
"One element that is positive
good economics, and a very ex- choice.
for us here, though, is a lot of
citing opportunity for us. Also
what I think it does is it provides kasha," he said. "It's essentially cookies are actually consumed at
us with a blueprint for how we can boiled buckwheat. It takes 20 to 30 the breakfast occasion. They are forpartner with strong local companies minutes to prepare, and we believe tified with vitamins the same way
in joint ventures to open up some over time we can migrate people you fortify cereal. And so there is
of these emerging markets in a way from that hot cereal category to a potential for us to get the same benefits from cereal into a cookie and
that does not require us to necessar- cold cereal consumption habit."
Snacks account for more than have a breakfast cookie, which is
ily go out and make acquisitions or
to buy smaller companies and com- 40% of Kellogg's global sales, and very similar to what we would sell
bine them to create something that Russia offers a great opportu- elsewhere in the world but as a cenity to grow this side of Kellogg's real opportunity." MBN
we want to have long term."

DeBruce Grain expanding storage
complex in Mississippi
KANSAS CITY - DeBruce Grain
Inc. said it will be making significant additions to its Rosedale,
Miss., facility, including two 90-foot
diameter steel tanks, each with a
capacity of 530,000 bus, as well as
construction of a 55,000-bu hopper tank and a new overhead truck
load-out system. Receiving and distribution rates to the new tanks are
rated at 40,000 bus per hour and the
reclaim and load out rate at 50,000
bus per hour, DeBruce said.
16 / February 23, 2010 Milling & Baking News

DeBruce said the new investments
will bring the facility, constructed
in 2009, to total storage capacity of
1,900,000 bus.
"These new additions to our Rosedale facility will allow this facility
to function more efficiently during
harvest and expand our ability to
handle rice and other bulk grains
through the facility," said Paul DeBruce, chief executive officer.
In addition to the new storage
tanks and the load-out system, the

equipment at the facility will be integrated and managed with computers
and will require a minimal amount of
manpower to operate the high-speed
truck and barge loading system. The
facility is able to load barges with
soybeans, corn, wheat and rice at a
rate of 50,000 bus per hour.
DeBruce said the grain stored at
the facility originates from producers and elevators throughout the
region, and once loaded on trucks
or barges, the grain is merchandised
throughout the southeast region of
the United States and shipped to the
southern states bordering the Gulf
of Mexico for export. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - February 23, 2010

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