Kelloggs, Wilmar Announce China Joint Venture

BATTLE CREEK, Mich.Kellogg Co. and Wilmar International Ltd. have entered a joint venture for the sale, manufacturing and distribution of Kelloggs cereal and Pringles snack foods brands in China. The joint venture company will be headquartered in Shanghai, and its launch is subject to regulatory approvals.

Yihai Kerry Investments, Co., Ltd., Wilmars wholly-owned subsidiary in China, will participate in the 50-50 joint venture. Wilmar will contribute infrastructure, supply chain scale and sales and distribution networks in China, and Kellogg will contribute a portfolio of brands and products.

Chinas snack-food market alone is expected to reach an estimated $12 billion by year-end, up 44% from 2008," said John Bryant, president and CEO for Kellogg. To capture this growth, we will leverage the key strengths Kellogg and Wilmar bring to the partnershipthe globally recognized Kelloggs and Pringles brands and deep category knowledge; scale and local market experience and our mutual commitment to consumer-focused innovation."

Wilmar International Ltd. is Asias largest agribusiness group and is among the largest listed companies by market capitalization on the Singapore Exchange. The companys business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals and grains processing.