Kellogg Company

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Kellogg

logo
legal form Corporation
ISIN US4878361082
founding 1906
Seat Battle Creek , Michigan , United StatesUnited StatesUnited States 
management
  • Steven Cahillane ( CEO )
Number of employees 33,577 (2015)
sales $ 13.53 billion (2015)
Branch food
Website www.kelloggcompany.com

Kellogg Company's headquarters in Battle Creek

The Kellogg Company (also Kellogg’s ) is one of the world's largest companies for cereal products , especially breakfast cereals , with production facilities in twenty countries. It was founded in 1906 in Battle Creek , Michigan by Will Keith Kellogg under the name Battle Creek Toasted Corn Flake Company . In 1894, Kellogg and his brother John Harvey Kellogg succeeded in making the first cornflakes . In 1922, the Battle Creek Toasted Corn Flake Company was renamed and given its current name - Kellogg Company .

history

The beginnings

A coincidence led to the founding of today's global food company in Battle Creek, Michigan . In 1866, two Seventh-day Adventists James and Ellen G. White founded a sanatorium in Battle Creek. A facility based on naturopathy with the simultaneous implementation of beliefs: renouncing meat, alcohol, tobacco and coffee, emphasizing the healing power of fresh air and sun were in the foreground. John Harvey Kellogg (1852-1943) had taken over the management there in 1876 as a newly graduated doctor (and renamed it Battle Creek Sanitarium ). John Harvey got his younger brother Will Keith Kellogg (1860-1951) a job in the sanatorium.

In accordance with the objectives of the two founders of the sanatorium, the consumption of meat was forbidden, so the staple food consisted mainly of bread . The two Kellogg brothers began to look for alternatives, experimenting in the sanatorium's laboratory. When they carried out new experiments in 1894, one day wheat that had been cooked by chance and had been used to prepare a dough, remained there overnight. The next morning they continued to experiment with the wheat kernels, which had meanwhile become very swollen, pressed them through rollers, and then decided to heat dry the flat-rolled kernels. The result was thin, crispy wheat flakes. The patients who were served the new product - seasoned with a little salt - on a trial basis were so enthusiastic that when they were discharged, many asked if they could be sent the Granose - as the new product was initially called.

In 1897 the brothers founded a small company - the Sanitas Food Company  - to further develop the product and set up a mail order business for former patients. Will Keith Kellogg had since experimented further and developed a better tasting version of the product based on corn . Unlike his brother, Will Keith had much more far-reaching plans, wanted to set up a large company from which the new food would be shipped to the growing customer base.

Kellogg had the example of Charles William Post (1854–1914) in mind. Post had been a patient of the sanatorium and had gained an insight into the manufacturing process of the novel food during his stay there. In 1895, Post founded the Postum Cereal Company , making coffee substitutes and breakfast cereals, and later became a millionaire.

The profit margins in the cereal business were enormous: a simple manufacturing process and imaginative advertising turned cheap cereal grains into expensive health food. Within a short time, CW Post found numerous imitators. In a kind of start-up boom, more than 40 breakfast cereal producers sprang up in Battle Creek. Will Keith Kellogg set a goal of surpassing them and founded the Battle Creek Toasted Cornflake Company in 1906 .

Initially, production was no more than 1,000 packs per day, but just one year later, 300 employees were now producing around 4,000 cornflakes boxes per day. The company grew rapidly, to which extensive and clever advertising campaigns contributed significantly. In 1909, production reached more than 120,000 packs.

WK Kellogg tried very early on to bind consumers to its products, provided the cartons of its cornflakes with the Kellogg’s logo and advertised that only products with this print were The Original .

In order to keep up with the growing market, and also to respond to the changing eating habits of consumers, the product range was constantly expanded ( Kellogg's Bran Flakes 1915, Kellogg's All-Bran 1916) and new types of packaging ( waxtite wrappers ) and marketing strategies were developed. Kellogg also wooed its young customers. Anyone who bought more than two boxes of his cornflakes received the Funny Jungleland Moving Picture Book : a colorful picture book with costumed animals - a long-sought market hit with a total circulation of 43 million.

The company's international expansion began in 1914 with the establishment of a Kellogg subsidiary in Canada .

1920s

In 1922 the Battle Creek Toasted Cornflake Company was renamed and renamed the Kellogg Company .

The company continued to expand: Kelloggs products were launched on the UK market. In 1924 a branch was established in Sydney to open up the Australian market.

New products were developed: Kellogg's Pep (wheat flakes enriched with vitamins) came onto the market in 1923, and Kellogg's Rice Krispies in 1928 . During the Great Depression , the Kellogg Company also had to cut production. However, it has avoided firing workers. The work was redistributed. Instead of working in three shifts as before, they began to work in four shifts, each of which lasted six hours. Due to the shorter total working hours, this naturally resulted in a loss of income for the employees, but there were no layoffs.

In 1929 WK Kellogg laid down management of the Kellogg Company , but remained on the company's board of directors until 1946.

1930s

Kellogg spent large sums of money trying to influence people through advertising to get them interested in its products. 1931 was the year that radio became very popular in the United States, and Kellogg knew how to use this new medium for his own purposes; he poured $ 3 million into advertising that year. It sponsored radio programs like The Singing Lady - Irene Wicker , which aired on NBC , and Howie Wing (about the adventures of a young pilot).

With television then spreading rapidly , the “messages” could be conveyed even faster and more intensively. Gerald Carson writes in his book Cornflake Crusade ( The cornflake Crusade ): " In television theyhave found the ideal medium for instructing American youth in Their breakfast duty. ”(German:“ With television they have found the ideal medium to teach American youth what their duty is at breakfast. ”) And Howard M. List, advertising manager at Kellogg, described very clearly what function and meaning he attributed to the TV commercial: “ With television, we can almost sell children our product before they can talk. They know who the TV heroes are before they can talk full sentences. In the old days, children ate what their mothers bought, now the kids tell their mothers what to buy. "(German:" With television, we can sell our products to the children even before they have learned to speak. They know their TV heroes before they can speak full sentences. In the past, children ate what their mothers bought , today the children tell their mothers what to buy. ")

In 1938 Kellogg opened a factory in Manchester, Great Britain.

1950s

On October 6, 1951, Will Keith Kellogg , founder of the Kellogg Company , died at the age of 91.

: In the course of the 1950s, new products are constantly being brought to market Kellogg's Corn Pops , Kellogg's Frosted Flakes , Kellogg's Sugar Smacks , Kellogg's Cocoa Krispies and Kellogg's Special K .

The Kellogg company was one of the pioneers in advertising television. The latest color psychological findings were used to design the packaging of the products. Famous illustrators and comic artists - such as Norman Rockwell - were used to create typical Kellogg's characters such as B. To design Tony the Tiger , who “took the stage” in 1952. In 1956, the Kellogg's commercial song Doing the Flake became a hit. Children soon found, depending on the fashion, model cars or dinosaurs in the cornflakes boxes, sports stars were depicted on the outside of the boxes. The massive advertising campaigns had an impact, putting competitors in the back seat, even when their flakes tasted better and were crisper than Kellogg's products in blind tests .

And so the company continued to grow. In 1952 a new plant was opened in San Leandro , California . 1954 saw a $ 7 million expansion of the main factory in Battle Creek by 13,000 square meters. In 1956 a large warehouse and dispatch building was built at the main plant. This is where the raw materials used in production - such as sugar, rice, bran , raisins, malt syrup, packaging material - were stored and the products made in the factory were dispatched. In 1959 a plant was opened in Memphis , Tennessee . Internationally, plants were opened in Mexico (1951) and New Zealand .

1970s

The Kellog Company made several major acquisitions in the 1970s : 1970 Fearn International , Franklin Park , Illinois ( soy products), 1976 Mrs. Smith's division of Schwan Food Company , Marshall , Minnesota , and 1977 Pure Packed Foods .

Newer development

In 2000, Kellogg took over the Kashi Company in La Jolla , California . The Kellogg Company has been reorganized and restructured: It has been divided into two "Divisions" ( "Business Units" ): Kellogg USA and Kellogg International . In 2001, Kellogg took over Keebler Foods Company in Elmhurst , Illinois , a leading manufacturer of baked goods with around 13,000 employees - the largest takeover in the company's history at 4.56 billion dollars.

In 2001 General Mills overtook Kellogg to become the number 1 cereal producer.

In November 2005, the previous chairman of the board and supervisory board of the Kellogg Company , Carlos Gutiérrez , was appointed Secretary of Commerce by US President George W. Bush and resigned from his offices at Kellogg. His successor was James M. Jenness , born on May 15, 1946 in Chicago , who during his time at the Leo Burnett advertising agency carried out advertising campaigns for almost all brands of the Kellogg Company .

In 2012, the Kellogg Company acquired the Pringles brand of chips from Procter & Gamble .

Today, the Kellogg Company employs around 25,000 people in 17 manufacturing facilities, has offices in 160 countries and manufactures more than 50 different grain products that are sold in 180 countries around the world. The Kellogg Company has annual sales in excess of $ 10 billion.

September 2016 Kellogg's takes a 51% stake in the Tyrolean muesli producer Vita + Naturprodukte GmbH, based in Langkampfen, which markets organic natural products (muesli, flakes and others) in German-speaking countries under the Verival brand.

In October 2016, Kellogg's announced that it would close its only German plant in Bremen, which finally happened in June 2018. This was justified with a decline in volume and underutilized facilities.

Kellogg Germany GmbH

Kellogg's systems in Bremen on the Weser

In 1928 Kellogg's Corn Flakes were first offered in Germany. Various sales partners imported the new product to Germany. On June 20, 1929, an advertisement for Kellogg's Corn Flakes first appeared in Gartenlaube magazine . The advertisement was placed by the Hamburg import company Otto KA Trende .

Even after the Second World War , sales in Germany continued through various importers and sales partners until 1961. In 1962 the Reis- und Handels-AG in Bremen took over the distribution of Kellogg products. In the same year Kellogg acquired shares in this company. Just one year later, in 1963, Kellogg Deutschland GmbH was founded in Bremen and its own production facility for cereals was set up in Germany.

The Bremen location was expanded in the following years. In 1989 a distribution center with a total capacity of around 33,000 pallet spaces was built. The fully automated, computer-controlled high-bay warehouse was the largest and most modern in Europe at the time of its completion. The Bremen plant was closed in June 2018. The current German headquarters of Kellogg's is in Hamburg.

Chronology of the introduction of Kellogg's products in Germany

Logo Kellogg's Original Cornflakes (older)
  • 1928 First sale of Kellogg's Corn Flakes
  • 1962 Reis Knusperle (later Rice Krispies , sales in Germany and Austria stopped in 2014)
  • 1963 Honey Pops (today's Smacks )
  • 1965 Cornfrost (since 1974 Frosties )
  • 1971 Cornpops (since 2001 Pops )
  • 1974 Special K
  • 1981 Cocopops (since 2002 Chocokrispies )
  • 1982 Crunchy Nut Cornflakes
  • 1984 mueslix
  • 1988 Toppas and Chocos
  • 1992 Froot Loops and Chombos
  • 2002 Smacks Choco Tresor (since 2010 Tresor )
  • 2003 Honey Loops , Special K Red Fruit and Special K Choco
  • 2004 Froot Loops and Frosties with less sugar
  • 2005 Froot Loops with less sugar, Choco Krispies XXL , Choco Krispies Chruncher , Special K Black Berry and Kellogg's DayVita
  • 2006 Choco Krispies tubes
  • 2007 Special K Apricot Fruit , Special K Strawberry Choco and DayVita Apple and Fig
  • 2008 Zimz (since 2011 Kringelz )
  • 2018 WK Kellogg (different varieties, partly also organic and vegan )

Controversy about excessive fortification of products with vitamins and iron

In order to promote the image of their products as a supposedly healthy alternative to a regular breakfast, Kellogg has been enriching its cornflakes in Germany with artificially produced vitamins and minerals, sometimes in high doses, since the 1970s. The information on the packaging is often significantly exceeded. Researchers have long warned that excessive consumption of these fortified foods can also have negative health consequences. In particular, the high iron content is unnecessary and even dangerous, for example, a higher risk of heart attacks, diabetes and tumor diseases has been observed in people with a hereditary iron excess . Similar consequences of excessive iron intake are suspected for healthy people.

In early 2000, based on these findings, the Norwegian government banned the import of Kellogg's products into Norway. However, the EFTA Court declared this prohibition inadmissible.

Web links

Commons : Kellogg Company  - Collection of images, videos and audio files

Individual evidence

  1. a b Annual Report 2015. (PDF) (No longer available online.) Kellogg Company, archived from the original on September 3, 2016 ; accessed on September 2, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / investor.kelloggs.com
  2. ^ Clown box of Sugar Smacks
  3. Thomas Jahn: Kellogg's swallows Pringles. In: handelsblatt.com . February 15, 2012, accessed February 14, 2015 .
  4. Kellogg's joins Tyrolean muesli producers orf.at, September 20, 2015, accessed September 20, 2016.
  5. Kristian Klooss: The rise and fall of the Kellogg factory in Bremen. In: butenunbinnen.de . June 30, 2018, accessed February 25, 2019 .
  6. WK Kellogg range combines tradition and naturalness cash.at, March 5, 2018, accessed on March 6, 2018.
  7. Kirsten Brodde: Doping from the supermarket. greenpeace magazine 2.01, January 2000, accessed on March 6, 2018 .
  8. ^ E-3/00 EFTA Surveillance Authority v The Kingdom of Norway . (Action brought by the EFTA Surveillance Authority against the Kingdom of Norway) [2000-2001] EFTA Ct. Rep. 73. of April 5, 2001.