Kellogg (K) Company
Brief History
Kellogg (K) is American ready-to-eat cereals producers and other food products founded in 1900. The company was founded by the brothers, Dr. John H. Kellogg and W.K. Kellogg, who together devised a method of producing flavorful flakes of processed grains. The company was initially known as the Sanitas Food Company. Dr. John H. Kellogg joined his brother’s firm in 1906, and they came up with the Kellogg Toasted Corn Flakes Company. In 1922, they adopted the present name and began manufacturing cereals and other cornflakes.
By 1969, the company had gained popularity, especially after the acquisition of Salad Foods, which led to the introduction of tea and desserts production lines. In 1970, Kellogg (K) acquired Fern International, which was a famous producer of soups, sauces, and other foods. The company had initiated the acquisition of other food-producing companies to increase its portfolio; in 1976, Mrs. Smith’s Pie Company was acquired, and Pure Packed Foods, makers of nondairy frozen foods, was acquired in 1977. Don't use plagiarised sources.Get your custom essay just from $11/page
In the year 2000, it was a beginning new era of Kellogg (K). The company regrouped its product portfolios into categories, which included convenience and snack foods (granola bars, cookies, and cracker products).
Kellogg (K) distributes its products in the North American region, Europe, Australia, Latin America, and Asia.
When W.K. Kellogg established the company in 1900, he was a member of Seventh-Day Adventist Church. He formed the company based on the values instilled by the church. He treated every client, whether affluent or disadvantaged, with humility and equality. He advocated for accountability for the actions and the result the company produced. The two brothers had a vision of expanding the company in terms of the brands’ portfolio and geographical coverage.
Primary Financial Data of Kellogg (K) Company
In 2012, Kellogg was ranked as the second World Largest Food producing company. The company is ranked on the Fortune 500 list of the largest companies in America with estimated revenues of $13 billion. According to Forbes, the company has an estimated assets value of $17 billion and profits of $1.3 billion. According to the New York Stock Exchange, the common stock for Kellogg was valued at $0.25 par value per share. The company registered total revenue of $13.05 billion in 2016. There was a 0.86% decline in revenue in 2017, with an annual income of $12.854 billion and a net profit of $1.269 billion. In 2018, the company registered a yearly income of $13.547 and a net profit of $1.71 billion, which was a 5.39% increase from the previous year. There was a 0.23% increase in annual revenues in 2019, with the company recording $13.578 billion in revenue. Over the last three years, the company’s revenue has been increasing substantially, mainly due to the increase in the value of shares and expanding the brand portfolio.
According to statistics conducted in 2018, Kellogg was found to have employed 34,000 employees worldwide. There has been an increase from 2007 to 2017 in the number of employees due to the rapid expansion of the firm and the widening of the global market share.
Kellogg’s headquarters are located in Battle Creek, Michigan, United States. Currently, Kellogg manufactures its products in 18 countries, which serve 180 countries.
Mission and Strategic Goals
Kellogg aims at enriching and delighting the world through foods and brands that matter. Moreover, the company aims to fulfill the founder’s vision by being committed to diversity and approach. The company has the purpose of nourishing companies so that they can flourish and thrive. According to the company’s website, they have a heritage that drives the future of the company, which keeps them focused and excited about the future.