Keebler Elves to Go Snap, Crackle and Pop

Kellogg Co. (Battle Creek, Mich.) has completed the acquisition of Keebler Foods Co. (Elmhurst, Ill.), creating a powerful new POP presence in retail food stores. In doing so, said Kellogg chairman and ceo Carlos Gutierrez, the company has put in place the most critical element of its growth plan.

According to Gutierrez, that new growth plan will include: a more diversified portfolio, with products that rank first or second in U.S. sales in seven major food categories (Keebler is Number Two — behind Kraft's Nabisco — in the cookie and cracker segments, both growing faster than most other U.S. food categories); and a stronger presence in traditional supermarkets and in non-traditional channels such as convenience and gas stores, vending, foodservice, club stores, and mass merchandise stores.

The new and expanded company has projected annual sales of more than $9 billion. Eleven Kellogg and Keebler brands had 2000 retail sales of at least $100 million in the United States. Kellogg's cereal had sales of $2.5 billion; Keebler cookies and crackers had sales of $1.3 billion; and various other products — Pop-Tarts, Eggo waffles, Cheez-It crackers, Nutri-Grain cereal bars, Rice Krispies Treats, Murray cookies, Austin snacks, Morningstar Farms products and Famous Amos cookies – all had sales of $100 million or more.

Keebler will continue to be headquartered in Elmhurst, Ill., operating as a part of Kellogg USA. It produced sales of $2.7 billion in 2000. Kellogg's, the world's leading producer of cereal and a leading producer as well of convenience foods, was a $7 billion company in 2000, No. 250 in the Fortune 500.