Kellogg is growing its business in one of the world's most lucrative emerging markets by acquiring a top snack foods maker in China, our company announced June 30.

Through a new, majority-owned subsidiary, we've acquired substantially all the assets of Zhenghang Food Company Ltd. ("Navigable Foods"), which produces and markets cookies and crackers in the north and northeastern regions of China. Currently, Kellogg doesn't sell any snack products in the burgeoning Chinese marketplace, although we do import some cereals into the country.

"Geographic expansion into high-growth markets like China will help Kellogg Company continue to deliver sustainable growth," our president and chief executive, David Mackay, said in a press release announcing the transaction. "Navigable Foods' biscuit products are a strong, strategic fit within the Kellogg portfolio and will further build our presence in China." Click here to read the press release.

Founded in 1993, Navigable Foods is one of China's major biscuit manufacturers. Its large variety of cookie and cracker products are sold under the ZhengHang brand.

Navigable Foods will continue to be headquartered in Qingdao, a city in Shandong province. It will report into our Asia Pacific business, led by Jeff Boromisa, president, Kellogg Asia Pacific.

The acquisition includes two manufacturing facilities - one located in Shandong province's Yishui county and the other in Fushun, a city in Liaoning province - as well as Navigable Foods' extensive sales and distribution network.

Virtually all of the company's nearly 1,800 employees, including its management team, have been offered employment by the majority-owned Kellogg subsidiary completing the transaction.

"This acquisition is a wonderful complement to our product portfolio," Jeff Boromisa notes. "We are going to leverage our brand-building and innovation expertise and our understanding of the biscuit and cereal categories - along with Zhenghang's existing manufacturing, sales and distribution infrastructure - to drive accelerated growth with this business."

Putting it into Perspective Along with growing cereal and expanding snacks, pursuing selective growth opportunities is one of the three main priorities encompassed by Kellogg's focused business strategy. It's all about identifying opportunities for additional growth through complementary acquisitions such as Navigable Foods. We can also grow by entering related categories or expanding existing infrastructure or capabilities. As we do, we'll remain focused on our strengths while remaining committed to sustainability. The continued execution of our proven, powerful focused business strategy is vital to turning our company's vision and mission into reality.