Kellogg Acquires Kashi

BATTLE CREEK, Mich.--Kellogg Co. acquired Kashi Co. on June 30 for an undisclosed amount. The acquisition will help Kellogg position itself in the natural cereal and convenience categories. Previously, Kellogg has not had success in these areas; the acquisition of a successfully positioned company such as Kashi will help Kellogg extend its natural product base.

"Kashi will enhance our leadership position in the ready-to-eat cereal category," said John Cook, executive vice president of Kellogg Co. and president of Kellogg North America. In addition, it will "further extend our commitment to build our consumer base in the rapidly growing natural foods marketplace," said Cook.

For Kashi, the acquisition means a significant move into the mainstream channel. "Working with Kellogg, we will continue to pay homage to our roots in the natural foods channel as we pursue a broader, mainstream consumer market for our products," said Philip Tauber, president of Kashi Co.

Kashi was founded in 1984 by Tauber and his wife, Gayle. Its company headquarters will remain in La Jolla, Calif. and will be incorporated into the natural foods division at Kellogg, joining other "new neighbor" Worthington Foods, which was acquired by Kellogg in November 1999.

For information on these companies, visit www.kashi.com or www.kelloggs.com.