Kellogg entering Russia by acquiring country's leading cereal, snacks maker

Below are images of several biscuit, cracker and cereal products currently made by United Bakers.

Kellogg announced in January that it was entering the large, fast-growing Russian marketplace by acquiring one of the country's largest cracker, biscuit and cereal producers.

The United Bakers Group is the market leader in all of the segments in which it competes. Its products - marketed primarily under the Yantar and Lyubyatovo brand names - are a strong, strategic fit with Kellogg Europe's existing cereal and snacks portfolio.

"Consistent with our strategy, we continue to pursue the right kind of opportunities to grow our business," says President and CEO David Mackay. "The acquisition of United Bakers in Russia is an exciting strategic development for Kellogg. United Bakers is a leading producer of high quality cereals and biscuits, and its existing operations will help us establish a considerable presence in this large and fast-growing market."

The company, which has 4,000 employees, will operate as a Kellogg subsidiary reporting into our European business.

Based in Voronezh, a city in southwestern Russia about 320 miles (515 kilometers) from Moscow, United Bakers has manufacturing plants in Voronezh, Pskov, Gorohovets, Vyazma, Tyumen and Severskaya. (See map below.)

Serving more than 35,000 retail outlets across Russia, its logistics network includes 10 offices and 60 distribution centers. They are located in the country's largest cities, including Moscow, St. Petersburg, Rostov, Nizhny Novgorod, Samara, Yekaterinburg, Irkutsk and Novosibirsk.

Russia has a population of more than 141 million people, with a steadily expanding middle class. 2006 was the country's eighth consecutive year of economic growth.

The United Bakers Group's manufacturing plants are in the Russian cities of Voronezh (1), where its headquarters is also located, as well as Pskov (2), Gorohovets (3), Tyumen (4), Vyazma (5) and Severskaya (6).