Significant milestones deserve special recognition - and surpassing $2 billion in annual gross sales is definitely a significant milestone for our U.S. Specialty Channels business.

"In 2001 this division came together, and over the years we've added businesses to form a base of $1.3 billion dollars," says Dave Pfanzelter, President, U.S. Specialty Channels. "Now we've reached $2 billion in gross sales revenue, and we recognize that such results are the cumulative efforts of everyone on our team. We also appreciate the efforts of all Kellogg employees who assisted in both small and big ways with this achievement."

To highlight the $2 billion mark and show appreciation to its employees, U.S. Specialty Channels held a big celebration in December at the Grotto, a restaurant in Oak Brook, Ill., near the business's Elmhurst headquarters. Employees from all functions, including Sales, Marketing, Operations, Finance and Human Resources, participated in the festivities. Several key Kellogg executives also attended the event to show their support and offer congratulations, including Brad Davidson, President, Kellogg North America.

A special treat for all in attendance was the appearance of surprise keynote speaker Terry Bradshaw, former NFL quarterback for the Pittsburg Steelers and current Fox Sports TV commentator.

Tony the Tiger joined pro football legend Terry Bradshaw, pictured directly in front of Tony, and the U.S. Specialty Channels Leadership Team at yesterday's special event celebrating Specialty Channels achieving $2 billion in annual sales. Pictured with Tony and Terry are, from left, (top row) Doug Peters, Vice President, Finance; Tim Gallagher, Vice President, Supply Chain; Dave Pfanzelter, President, U.S. Specialty Channels; Brian Huff, Vice President and General Manager, Club; (bottom row) Tim Silsbee, Vice President, Human Resources, Specialty Channels and Information Technology; Tammy Gianfortune, Vice President and General Manager, Convenience, Drug and Value; and Andy Glaser, Vice President and General Manager, Foodservice and Vending.

"Terry's achievements, starting out as the ‘Bayou Bumpkin' early in his career and transitioning to someone who won four Super Bowls, closely parallels the rise and growth of Specialty Channels," Dave says. "Over the past eight years, our growth rate has been 10 percent compound annual growth rate, and we have the second-largest amount of profit of any Kellogg business worldwide. In fact, we hold the largest and most sustainable performance in this century. We've essentially won the Super Bowl every year."

Terry Bradshaw and Dave Pfanzelter

U.S. Specialty Channels was created in response to the needs of customers and consumers in nontraditional channels. Most consumers today are looking for quality brands and positive nutritional choices - and not just in grocery stores, but also in hotels, wholesale clubs or convenience stores. Specialty Channels' goal is to ensure consumers' favorite Kellogg products and brand are available to them regardless of which channel they choose.

Within U.S. Specialty Channels are three business units:

• Warehouse Club customers include expansive retail operations such as Costco, Sam's Club, BJ's and Smart & Final, which typically deliver innovative package formats.

• Convenience, Drug & Value customers include outlets such as 7-Eleven, Amoco, Walgreen's and Dollar General, which we provide with packaging solutions, new products and in-store execution.

• Customers in the Foodservice & Vending (also known as Food Away From Home) channel include chains such as Subway and Burger King, as well as foodservice operations like those found in public schools, colleges, hotels, corporate dining facilities and military bases.