Modern stakeholders judge companies by
more than profitability. That's why companies
like Wal-Mart and Coca-Cola,
to name a few, now report on their
environmental sustainability and social
responsibility as well as finances -
what's known as the "triple bottom line"
or "people, planet, profit" concept.
Kellogg has a proud and longstanding
commitment to corporate responsibility.
Watch for our first-annual global corporate
responsibility report later in the year. |
At the 86th Annual Shareowners Meeting on April 25 in Battle Creek, the remarks of President
and Chief Executive Officer David Mackay and Chairman of the Board Jim Jenness reflected
the "Sustainable, Dependable Performance" theme of the 2007 Annual Report.
While commodities and energy prices are a challenge for most packaged-food companies,
David stressed that it's "our unwavering focus on the fundamentals of our business that has
allowed Kellogg to maintain its momentum. These include driving cereal growth, expanding
snacks and continued growth of our Frozen Foods and Kashi businesses."
In 2007, Kellogg purchased Gardenburger®, a maker of vegetarian, vegan and alternative
meat products, and Bear Naked®, a maker of premium all natural and organic granolas,
hot cereals and trail mixes. This January, the company acquired the United Bakers Group
in Russia. These transactions are designed to enhance the ability to generate long-term
growth.
Markets like Russia, Central and Eastern Europe, Turkey, Latin America and Asia represent
significant growth potential, and the company has already made good progress. Russia, in
particular, is one of the emerging markets that now represent a very important part of the
long-term growth strategy.
Other issues impacting the company's ability to deliver dependable performance in the future include: environmental sustainability, marketing
to children and obesity. In each of these areas, Kellogg continues to be a leader.
With first quarter 2008 earnings showing sales growth of 10 percent and operating profit growth of 9 percent, Kellogg Company continues to
deliver sustainable, dependable performance. There's no doubt today's marketplace offers some tough issues to face, but there is continued
opportunity for this global organization which now boasts almost 30,000 employees.
In 1997, the W.K. Kellogg Institute for Food and Nutrition Research (WKKI)
in Battle Creek became our global innovation center. Since WKKI opened its
doors, Kellogg Company's net sales have doubled (from $6 billion to almost
$12 billion), and net sales linked to innovation have nearly doubled as well.
Today, expansion is underway to grow this facility by more than 150,000
square feet to enhance the famous Kellogg innovation and fuel top-line
growth. The facility should be operational by third quarter of 2009. |
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