From pilaf to powerhouse: Celebrating 25 years of Kashiness

The secret ingredients So what’s actually in Kashi's "Seven Whole Grains on a Mission?" The nutritious and tasty blend includes oats, long-grain brown rice, rye, hard red winter wheat, triticale, buckwheat and barley, as well as sesame.

Did you know? Today, Kashi is the number one natural brand across the U.S. in any category.

Take a look at Kashi's Web site and you'll notice something right away: These people are passionate about what they do.

"At Kashi, we believe in helping people take small steps toward a healthier lifestyle," says David DeSouza, General Manager, Kashi. "We do our best to help people – wherever they are on their journey – to eat better and live more naturally."

That commitment has taken Kashi from its humble beginnings to its current status as a natural-food powerhouse with nearly $600 million in 2008 sales. Here's a look at where the company came from – and its striking success today.

California dreamin'

Kashi started in 1984 in La Jolla, Calif., when Phil and Gayle Tauber decided to pursue their passion of good, natural food to fuel their athletic performance. They developed what they considered a "perfect protein" – a proprietary blend of seven grains and sesame seeds called Kashi Pilaf – and invested their savings and found a contract manufacturer.

Original Kashi packaging from 1984

The cereal required about 25 minutes of cooking, which proved to be a drawback for busy consumers. The Taubers pressed on, distributing samples of Kashi Pilaf wherever they could - including the 1984 Summer Olympics – and earning a loyal following of enthusiastic consumers. The duo labored in what was then a niche market, with little room on grocery store shelves for "natural" foods.

By the 1990s, the U.S. natural foods phenomenon had begun, supported by the development of Whole Foods and other similar retail chains. Consumers were searching for healthier foods and lifestyles, and Kashi helped answer the call.

The company introduced cereals such as Kashi Heart to Heart and Kashi GOLEAN, as well as other foods ranging from waffles to crackers and granola bars. By 1999, the Taubers had taken Kashi to $25 million in sales – a rousing success by any measure. However, the company faced distribution challenges in its quest to reach more consumers across a wider geography.

Kellogg & Kashi

In June 2000, Kellogg acquired Kashi for $32 million. The deal helped Kellogg increase its presence in the natural foods market, and gave Kashi access to Kellogg's vast distribution network and substantial advertising support.

Under Kellogg's ownership, Kashi has operated as an independent business unit. The company moved beyond breakfast foods as it systematically expanded its product portfolio. Kashi entered the frozen dinner and entrée category in 2006, followed by the frozen pizza category in 2007. Today, these are some of Kellogg's fastest-growing lines.

"Our entrees feature flavorful, all-natural ingredients," says Keegan Sheridan, Natural Food and Lifestyle Expert, Kashi. "They helped take our pilaf into the 21st century and now include more pioneering ingredients like the red quinoa in our Lemongrass Coconut Chicken entree."

Kashi crackers, snacks and cookies also enjoyed double-digit sales increases last year, thanks to strategic distribution initiatives.

In addition, Kashi has made its own acquisitions, including Stretch Island Fruit Company in 2005, which also includes FruitaBü organic fruit snacks for kids. In 2007, it also acquired Bear Naked, a natural food company specializing in granola and trail mixes.

By 2008 – a mere eight years after joining the Kellogg family – Kashi posted sales of $599 million.

The people behind the passion

Kashi's team of 70 dedicated team members live what they believe.

They believe that getting healthy starts with little steps, such as choosing healthy, all-natural foods like Kashi's, which are made with minimal processing and are free of refined sugars, artificial additives and preservatives. And they believe living a naturally healthy lifestyle extends beyond food, so they plan regular community outings like beach cleanups.

Kashi's employees also share a commitment to sustainability, utilizing greener office supplies, a composter in their kitchen, and reverse-osmosis machines instead of bottled water service. They call these efforts Project SpArK – Sustaining the Planet and Retaining Kashiness.

That attitude extends to food packaging as well. All the paperboard Kashi sources is made from 100 percent recycled sources with up to 80 percent post-consumer content, and is recyclable.

It all adds up to a company that's making a difference in consumer health and the environment – and that's the biggest success story of all.