Kellogg South Africa is celebrating its 60th anniversary Friday – and after six decades in operation, its business has never shone brighter.

Venkatachalam

"As we celebrate 60 years of operation in South Africa, we look not only to yesterday's glories, but also toward a bright future for our ever-popular brands," says Managing Director K. Venkatachalam, known as Venkat.

That's no exaggeration, as evidenced by second-quarter 2008 internal net sales growth of more than 26 percent, making Kellogg South Africa the second-strongest performer in our Asia Pacific business.

"On a full-year basis for 2008, we're expecting to grow our business to 28 million kilos with net sales volume of $96 million in U.S. dollars," Venkat notes. "The growth in products that we produce here in South Africa and export to other countries in sub-Saharan Africa has been equally impressive – increasing by more than 50 percent versus last year."

Most importantly, the business has earned consumers' loyalty. Kellogg is one of South Africa's top 10 most trusted consumer brands, according to a 2007 survey. It was also named the country's No. 1 cereal manufacturer in terms of value share by the Nielsen Co.

Kellogg's Corn Flakes is the country's biggest seller, and care is consistently taken to select only the best corn – known locally as maize – grown by South African farmers.

Other popular Kellogg cereal brands include All-Bran, Special K, Rice Krispies, Frosties and Coco Pops. A variety of Coco Pops Cereal and Milk Bars, All-Bran Bars and Special K Bars can also be found on South African shelves.

From modest beginnings to modern marketplace

This 1924 letter signed by W.K. Kellogg – which accompanied samples of Kellogg's Bran sent to South African consumers – was one of our first marketing efforts in the country.

Kellogg's Corn Flakes and All-Bran cereals first reached South Africa's shores in 1923. They were distributed to consumers by Gunn & Co. with sales direction from Kellogg's British organization.

Products were imported from Battle Creek and Canada until 1948, when Kellogg's sixth manufacturing plant opened its doors in Springs, South Africa, a town on the eastern outskirts of Johannesburg.

Sixty years later, Kellogg South Africa employs 260 people and operates a modern supply chain network that allows Kellogg to reach every corner of the country. Improvements are regularly implemented, such as a 2007 investment of US$7.5 million on a new corn and packaging line.

The business is always mindful of sustainable business practices. Equipment, process and technology upgrades have transformed every inch of the operation since the 1980s, increasing the facility's energy efficiency and product quality while lowering emissions and reducing its environmental footprint. Over the last three years, energy-saving lighting was phased into the plant.

Going forward, the South Africa business is set to meet Kellogg's global targets for energy reduction, including a 20 percent energy saving over 2005 figures by 2015.

Putting people first

At Kellogg South Africa, social responsibility has always been a central tenet. In 1977, Kellogg was one of the first companies to sign a trade union agreement that recognized the rights of workers in South Africa.

Today, that commitment to people – both within the company and in the wider community – is as strong as ever.

Within its own family, Kellogg South Africa is proud that 85 percent of its employees and 68 percent of its management team come from previously disadvantaged backgrounds. Plus, more than a third of its employees across all organizational and functional levels are women.

In addition, its Springs manufacturing facility is entirely wheelchair-friendly with ramps and gates that provide special access routes for disabled employees.

The company's social responsibility extends well beyond its own walls. Kellogg South Africa's community involvement has brought classrooms to deprived areas and electricity to local schools, particularly in the township of KwaThema, close to the Springs plant.

Kellogg also partners with South Africa's Joint Aid Management (JAM) to develop nutritional intervention programs for people living with HIV/AIDS. In addition, JAM assists Kellogg in supporting four impoverished East Rand farm schools with HIV/AIDS education, life skills, food guidance and an anti-drug and alcohol abuse awareness program.

The company also embraces and often pioneers ethical practices regarding product nutritional labeling and marketing aimed at children.

A fantastic future

In 2008, Kellogg will sell an impressive 55 million boxes of cereal in South Africa.

That's a big number for a business that started out small. It's no surprise, however, to the South African team, which remains committed to the vision put forth by founder W.K. Kellogg to be "a company of dedicated people making quality products for a healthier world."

With an eye toward innovation, Kellogg South Africa is poised for continued growth over the next 60 years and beyond.

Adds Venkat, "We are confident that Kellogg will continue to learn and grow by listening and reaching out to the people who work for us, sell to us, buy from us and live in our communities."

This press clipping from 1949 heralds the soon-to-be-completed Kellogg South Africa plant in Springs.