Milling & Baking News - April 9, 2019 - 11

Business

these great brands wasn't an easy decision, but we are pleased that they are
transitioning to an outstanding company with a portfolio in which they
will receive the focus and resources to
grow."
The transaction is expected to close
by the end of July and remains subject
to customary closing conditions and
regulatory approvals. Kellogg will
retain its remaining North America
snacking businesses, including crackers, salty snacks, wholesome snacks
and toaster pastries brands.
Kellogg said it plans to use the
cash proceeds from the sale to reduce
outstanding debt. The transaction
is expected to be less than 5% dilutive to Kellogg's projected 2019 currency-neutral adjusted earnings per
share.
Dara Mohsenian, an equity analyst with Morgan Stanley, wrote in an
April 2 research report that the divestiture makes strategic sense for Kellogg "given Kellogg's subscale positioning (No. 2 in cookies at 9% share
vs. No. 1 Mondelez at 43% share, and
No. 3 in fruit snacks at 12% share vs.
No. 1 General Mills at 47% share,
based on U.S. tracked channel scanner data), and that the businesses are

1853

Keebler timeline

The first
Keebler
cookie was
baked.

1966

United Biscuit adopts Keebler Co. as
official corporate name.

1996

Flowers forms a joint venture with
Artal Luxembourg Corporation S.A.'s
U.S. subsidiary, Invus Group Ltd.,
though which the companies acquire
Keebler for $487 million.

bakingbusiness.com / world-grain.com

Keebler merges
with United Biscuit
Company of America.

1974

United Biscuits acquires
Keebler for $53 million.

1998

Artal Luxembourg sells holdings in Keebler
to Flowers in an initial public offering.

2001

Kellogg acquires Keebler business
from Flowers Foods, Inc. for $3.9
billion.

2019

Ferrero Group agrees to acquire Kellogg's
cookie, fruit snack, pie crust and ice cream
cone businesses for $1.3 billion.

less attractive with declining revenue
and slightly lower margins than the
U.S. snacks average.
"We also believe lower scale post
the planned divestitures is more

Kashi teams up with Gen Z
influencers to create new snack
BATTLE CREEK, MICH. - While
food companies have a firm grasp on
the needs of millennials, Generation
X and baby boomers, Generation Z's
preferences remain a head-scratcher. To get inside of the minds of this
emerging demographic, Kashi, a subsidiary of Kellogg Co., Battle Creek,
Mich., works with a group of Gen Z
influencers known as the Kashi Crew
to create products for the Kashi by
Kids line. With their latest collaboration, the company rolled out a fresh
take on bars.
"We know parents are looking for
healthy food options that their kids will
love, so once again we went straight to
the source to create a food that's truly
for kids, by kids," said Jeanne Wilson,
director of brand marketing, Kashi.
"The Kashi by Kids Organic Super
Food Bites provide a twist on your average granola bar with each bite balancing great taste and mighty nutrition
to keep kids and parents satisfied."
Passionate about food and the planet, members of the Kashi Crew range
in age from 12 to 17 years old. The

1927

group includes Michael Platt, baker
and founder of Michael's Desserts,
Baltimore; Haile Thomas, health activist and plant-based chef; Hannah Testa, sustainability activist and founder
of Hannah4Change; and sisters Charlotte d'Arabian, baker, and Valentine
d'Arabian, dancer.
Their input went into everything
from the ingredients and flavor combinations to the packaging. The second
product in the Kashi by Kids line, Organic Super Food Bites, are available
in chocolate and mixed berry varieties. The filled soft baked snack is made
with plant-based ingredients and delivers 10 grams of whole grains and 3
grams of fiber per serving. The outer
layer is made with ingredients such
as whole wheat flour, coconut flour,
chickpea flour and sweet potato. The
fillings contain a Fair Trade cocoa and
chocolate blend or a strawberry, acai,
blueberry and blackberry mixture.
Kashi also kept parents in mind
when developing the product. Organic Super Food Bites come in individual
pouches, making them a convenient

manageable now that Kellogg has
transitioned out of the U.S. snacks
D.S.D. model, and Kellogg should be
able to reduce initial stranded overhead costs over time."MBN
on-the-go snack. In addition, the bites
are made without peanuts, so children
can take them to school or other activities where peanut products may be
banned.
Organic Super Food Bites rolled
out nationwide in February and may
be found at major grocery stores and
online. The snacks are sold in 5.6-oz
boxes that contain five individually
wrapped pouches; each box has a suggested retail price of $4.49.
To promote the launch, the company teamed up with parent influencers and the Kashi Crew. Three from
the group - Ms. Thomas, Ms. Testa
and Mr. Platt - are touting the snack
through social media channels, including Instagram where they have a
combined count of 64,000 followers.
Through these partnerships, Kashi
is spreading the word about Organic
Super Food Bites' benefits as a healthy
snacking option.
"We want to empower kids and
families to make positive choices now
that can lead to better days ahead -
while also making food and eating
fun," Ms. Wilson explained. "Our
hope is that our Organic Super Food
Bites can be part of a nutritious and
delicious solution for families." MBN
Milling & Baking News

April 9, 2019 / 11

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Milling & Baking News - April 9, 2019

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