Skip to Main Content
Kellogg Company logo

Kellogg Company

 Save

2019 Vault Rankings

At a Glance

Uppers

Well-known brand and company

Flexible working hours and great benefits

Downers

Reprimanded by FTC in 2010 for unsubstantiated advertising claims

Office politics can be prevalent in some locations

The Bottom Line

Kellogg is a widely known brand name for cereal and convenience foods that has a reputation as a top employer, especially in regards to work/life balance.

About Kellogg Company

From the company's home base in Battle Creek, Michigan, Kellogg Company battles with rival General Mills for the #1 spot in the US cereal market. Kellogg, founded in 1906, boasts many familiar cereal brands, including Kellogg's Corn Flakes, Frosted Flakes, Froot Loops, Special K, and Rice Krispies. While the company works to fill the world's cereal bowls, it actually makes more money these days from its snacks and convenience brands such as Kashi, Pringles, and Cheez-It, Eggo waffles, and Nutri-Grain and Bear Naked cereal bars. The company divested some of its cookie brands in 2019 including Famous Amos and Keebler Though its products are sold worldwide, the company generates around 60% of its revenue domestically.

Operations

Kellogg operates through four segments based geographic location – North America (US and Canada businesses, about 60% of total revenue); AMEA, which consist of Africa, Middle East, Australia and other Asian and Pacific Markets (more than 15%); Europe (around 15%); and Latin America which consist of Central and South America and includes Mexico (over 5% of total sales).

Overall, Snacks generate nearly half of sales while, cereal accounts for more than 35%. Frozen and noodles represent about 10% and 5%, respectively.

Geographic Reach

Headquartered in Battle Creek, Michigan, Kellogg manufactures its products in more than 20 countries and markets them in more than 180. It generates nearly 60% of its revenue in the US.

The company's manufacturing facilities in the US include four cereal plants and warehouses in Battle Creek, Michigan; Lancaster, Pennsylvania; Memphis, Tennessee; and Omaha, Nebraska and other facilities in California, Georgia, Kansas, Kentucky, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, and Tennessee.

Outside the US, Kellogg has additional manufacturing locations (some with warehousing facilities) in about 20 countries in Europe, Asia, Africa, and South America. The company has joint ventures in China, Nigeria, and Ghana.

Sales and Marketing

Kellogg's top five customers, including Wal-Mart, generate a third of Kellogg's total sales and almost half of US sales.

Products are sold to retailers through direct sales forces, broker, and distributor arrangements. Broker, and distributor arrangements are leveraged to market its products in less-developed areas or in markets outside its focus. The company spent $676 million, $752 million, and $732 million for advertising expenses in 2019, 2018, and 2017.

Financial Performance

After declining in 2016 and 2017, Kellogg's revenue skyrocketed in 2018, followed by another increase in 2019. Its net revenue, after peaking in 2018, declined in 2019. Despite the decline it has an overall growth of 56%.

Revenue grew to $13.5 billion in 2019, an approximately $31 billion increase from the year prior. The increase was driven by AMEA operations, partially offset by the three other segments.

Net income was $960 million in 2019, a decrease of 25% from $1.3 billion in fiscal year 2018. Selling, general and administrative expenses fell 1% in fiscal 2019 to $3 million, as a result of the ongoing "Project K" efficiency and effectiveness program.

The company ended fiscal 2019 with $397 million in cash and cash equivalents. Cash provided by operating activities was $1.2 billion in 2019, while investing activities provided another $774 million. Financing activities used another $1.9 billion.

Strategy

Kellogg is working at cutting costs and expanding revenue as consumers are turning away from its old reliable cereal lines as awareness of the health risks of sugar increases.

Its ongoing "Project K" efficiency and effectiveness program began in 2013 and its initiatives continue through 2019. This On the flip side, Kellogg in 2019 sold its cookie, fruit snack, pie crust, and ice cream cone businesses to Luxembourg-based Ferrero Group for about $1.3 billion as it reshapes its portfolio. The list of brands includes Keebler, Famous Amos, Mother's, Murray, and Stretch Island, as well as Little Brownie Bakers, which supplies cookies to the Girl Scouts.

Company Background

Will Keith (W. K.) Kellogg first made wheat flakes in 1894 while working for his brother, Dr. John Kellogg, at Battle Creek, Michigan's famed homeopathic sanitarium. John sold the flakes via mail order (1899) in a partnership that W. K. managed. In 1906 W. K. started his own firm to produce corn flakes. 

After finding success in the US with its innovative cereal varieties, the company expanded internationally beginning in Canada (1914) and followed in Australia (1924) and England (1938).

Kellogg Company

1 Kellogg Sq
Battle Creek, MI 49017-3534
Phone: 1 (269) 961-2000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: K
Stock Exchange: , NYSE
Chairman: John A. Bryant
CEO and Director: Steven A. Cahillane
SVP and CFO: Fareed A. Khan
Employees (This Location): 600
Employees (All Locations): 31,000

Major Office Locations

Battle Creek, MI

Other Locations

Palmer, AK
Montgomery, AL
Rogers, AR
Phoenix, AZ
La Palma, CA
Roseville, CA
San Jose, CA
Stockton, CA
Walnut Creek, CA
Denver, CO
Englewood, CO
Newington, CT
Mangonia Park, FL
Tallahassee, FL
Tampa, FL
Acworth, GA
Atlanta, GA
Augusta, GA
Columbus, GA
Cornelia, GA
Rome, GA
Des Moines, IA
Aurora, IL
Chicago, IL
Elmhurst, IL
Mattoon, IL
Oak Brook, IL
Seelyville, IN
Kansas City, KS
Florence, KY
Kimper, KY
Louisville, KY
Versailles, KY
Denham Springs, LA
Ponchatoula, LA
Saint Rose, LA
Canton, MA
Franklin, MA
Finksburg, MD
Hagerstown, MD
Auburn, ME
Battle Creek, MI
Cheboygan, MI
Davison, MI
Grand Rapids, MI
Mulliken, MI
New Hudson, MI
Minneapolis, MN
Kansas City, MO
Charlotte, NC
Huntersville, NC
Monroe, NC
Sanford, NC
Youngsville, NC
Omaha, NE
Hammonton, NJ
River Edge, NJ
Hauppauge, NY
Oakfield, NY
Cincinnati, OH
Columbus, OH
Delaware, OH
Loveland, OH
West Jefferson, OH
Zanesville, OH
Clackamas, OR
Horsham, PA
Lancaster, PA
Langhorne, PA
Mechanicsburg, PA
Muncy, PA
Cayce, SC
Antioch, TN
Cleveland, TN
Jackson, TN
Memphis, TN
Rossville, TN
Bulverde, TX
Fort Worth, TX
Schertz, TX
Spring, TX
Chesapeake, VA
Kent, WA
Chittoor, India
Kolkata, India
Mumbai, India
Navi Mumbai, India
New Delhi, India
Taloja, India
Osaka, Japan
Takasaki, Japan
Anjou, Canada
Belleville, Canada
Calgary, Canada
Taipei City, Taiwan
Kowloon Bay, Hong Kong