Kellogg Company (NYSE: K) is a large global food manufacturing company. Over the course of its existence, the firm has expanded to include many well-known brands under its umbrella. Kellogg Company is organized into a large number of subsidiaries that manage separate brands, geographies and other elements of the business, such as real estate. Among the well-known companies under the Kellogg's banner are Eggo, Pringles, Keebler, and Kashi. The company has been struggling to drive sales for the past two years partially due to declining demand in the US snacks business. For fiscal year 2017, Kellogg's reported estimates-beating revenue of $3.21 billion, but net sales dropped slightly by 0.7% compared to the year before. Kellogg's reported first-quarter net sales of $3.4 billion as of March 31, 2018.

On June 14, 2018, Kellogg Company announced that they would be voluntarily recalling boxes of Honey Smacks cereal due to a potential presence of Salmonella. The outbreak has impacted 73 people in 31 states thus far.


The parent company's flagship cereal products fall under the Kellogg's operating unit. These cereals include Corn Flakes, Fruit Loops, Rice Krispies, Raisin Bran, Special K, Frosted Flakes and Frosted Mini Wheats. Pop-Tart breakfast pastries are also a well-known part of the Kellogg's product offering. These operations are separated from other important corporate units.


The Eggo Company is one of Kellogg's important subsidiaries, operating its namesake brand of products that complement the Kellogg's breakfast offering. Eggo is well-known for its frozen waffles, which produce over $250 million in annual sales. The company has diversified its offering by branching into the pancake, french toast and breakfast sandwich markets. 


Kellogg's acquired the Pringles potato chip business from the Proctor & Gamble Company (NYSE: PG) in 2012 for $2.7 billion. At the time, Pringles' annual sales exceeded $1.5 billion and had a presence in more than 140 countries. The global presence was important for Kellogg's effort to expand its snacks business, which was previously heavily exposed to the U.S. market but had limited international reach. The new business helped drive the snack food portion of the product portfolio above morning foods based on revenue, continuing a long-term transformational trend.


Kellogg's acquired Keebler Foods in October 2000 for $3.86 billion in cash. At the time, Keebler was the second - largest cookie and cracker maker in the United States, and it generated revenue of $2.7 billion and net income of $88.2 million in 1999. As of 2018, Keebler's operations were still organized in several separate subsidiaries of Kellogg Company. Well-known brand Cheez-It crackers was part of this deal.


Kashi Company is one of Kellogg's major subsidiaries, and Kashi has its own subsidiaries that control different brands and operate internationally. Kashi is an organic breakfast cereal company with a focus on nutrition, sustainability, and ethical sourcing practices. The company's offering has grown to include entrees, bars, crackers, waffles, and powders. Kellogg Company acquired Kashi in 2000 as part of its effort to expand into the health food category, an initiative also supported by the acquisition of veggie foods leader Worthington Foods Inc. At the time of acquisition, Kashi's revenues were approximately doubling year-over-year, but growth has decelerated substantially since that point. In 2016, Kashi acquired a company called Pure Organic, which makes vegan nutrition bars and fruit snacks, further diversifying its offering. 

United Bakers Group

Kellogg Company expanded its international presence in 2008 with the acquisition of United Bakers Group, one of Russia's largest players in the crackers, biscuit and cereal space. United Bakers Group had 4,000 employees and annual sales of roughly $100 million at the time of the transaction. As of 2016, multiple subsidiaries of Kellogg Company still bear the United Bakers Group name, all of which control operations in the Russian Federation.

Egyptian Companies- BiscoMisr and Mass Food Group

Kellogg Company made two noteworthy acquisitions of Egyptian companies in 2015, taking a majority stake in BiscoMisr in January and buying Mass Food Group in September. At the time of the transaction, BiscoMisr is the leading biscuit maker in Egypt, with 3,300 employees and $70 million in annual sales. The acquisition cost roughly $144 million. Mass Food Group is a leading breakfast cereal company in Egypt, with more than $18 million in annual sales. Kellogg's paid $50 million for the firm. The companies were folded into existing subsidiaries. These acquisitions were part of a larger strategy to target emerging markets, offering new avenues for growth.