The document is Kellogg Company's 2007 annual report which summarizes the company's financial and operational performance for the year. Some key points:
- Net sales increased 8% to $11.8 billion and earnings per share grew 10% to $2.76. The company continued to invest in innovation, brand building, and cost-saving projects.
- Despite significant cost inflation, operating profit increased through price increases and efficiencies. Cash flow remained strong at over $1 billion.
- Total shareholder return was 7%, outperforming the S&P Packaged Foods Index for the seventh consecutive year.
- Looking ahead, Kellogg is well positioned for continued growth with momentum
2. Kellogg Company 2007 Annual Report
TM
Sustainable
Total Shareowner Return
Net Sales (million $)
Dependable
20%
11,776
19%
18%
Performance
10,907
16%
15%
10,177
9,614
Vision To be the food company of choice.
7%
5%
8,811 3%
-1%
Mission To drive sustainable growth through the power of our people and brands
Kellogg
S&P Packaged
by better serving the needs of our consumers, customers and communities.
Foods Index -8%
03 04 05 06 07 03 04 05 06 07
For the seventh consecutive year,
Net sales increased again
With 2007 sales of nearly $12 billion, Kellogg Company is the world’s leading producer of cereal
Kellogg Company’s total return to
in 2007, the seventh
and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal
shareowners exceeded that of the
consecutive year of growth.
bars, fruit-flavored snacks, frozen waffles, and veggie foods. The Company’s brands include Kellogg’s ®,
S&P Packaged Food Index.
Keebler ®, Pop-Tarts ®, Eggo ®, Cheez-It ®, Nutri-Grain ®, Rice Krispies ®, Morningstar Farms ®, Famous Amos ®,
Special K ®, Stretch Island ®, All-Bran ®, Frosted Mini-Wheats®, Club ® and Kashi ®. Kellogg products
Cash Flow (a) (million $)
Net Earnings Per Share ($) (diluted) Operating Profit (million $)
Dividends ($ per share) are manufactured in 18 countries and marketed in more than 180 countries around the world.
1,868
Table of Contents
1,031
2.76
1.20
1,766
1,750
1.14 957
950
1,681
Letter to Shareowners 2
2.51 924
1.06
2.36 1,544
1.01 1.01
Global Operations 8
2.14
769
Sustainable Dependable Global Brands 14
1.92
Our Nutrition Heritage 15
Our People 16
03 04 05 06 07
03 04 05 06 07
03 04 05 06 07 03 04 05 06 07
Including over $60 million of
Dividends per share have Operating profit increased
Earnings per share of $2.76 Environmental Sustainability 18
voluntary pension contributions,
increased 19% over the past despite significant cost
were 10% higher than 2006.
Corporate Social Responsibility 20
cash flow for 2007 remained
3 years. inflation and continued
strong at $1.03 billion.
reinvestment into our business.
Corporate Officers 22
Board of Directors 23
Financial Highlights
Manufacturing Locations and Brands 24
2007 Change
(dollars in millions, except per share data) 2006 Change 2005 Change Annual Report on Form 10-K
$11,776 8%
Net sales $10,907 7% $10,177 6%
44.0% -0.2 pts
Gross profit as a % of net sales 44.2% -0.7 pts 44.9% -
1,868 6%
Operating profit 1,766 1% 1,750 4%
1,103 10%
Net earnings 1,004 2% 980 10%
Net earnings per share
2.79 10%
Basic 2.53 6% 2.38 10%
2.76 10%
Diluted 2.51 6% (b) 2.36 10%
Cash flow (net cash provided by operating
1,031 8% 957 24% 769 -19%
activities, reduced by capital expenditure) (a)
$1.20 5%
Dividends per share $1.14 8% $1.06 5%
(a) Cash flow is defined as net cash provided by operating activities, reduced by capital expenditures. The Company uses this
non-GAAP financial measure to focus management and investors on the amount of cash available for debt repayment,
dividend distributions, acquisition opportunities and share repurchases. Refer to Management’s Discussion and Analysis
within Form 10-K for reconciliation to the comparable GAAP measure.
(b) Comparable 2006 earnings per share growth of 11% excludes $65 million ($42 million after tax or $.11 per share) of costs
attributable to the Company’s adoption of a new accounting standard that required the expensing of stock options.
3. TM
At Kellogg we have an unwavering focus
on the long-term health of our business.
Letter to Shareowners
Thanks to the hard work and passion of Kellogg Kellogg employees achieved these solid results Operating efficiencies. We continued the disciplined Brand building. In 2007 we continued to focus on
Company employees around the world, 2007 was despite being faced with the most difficult operating funding of projects that will provide cost efficiencies building our brands through advertising and consumer
another year of continued sales growth, strong environment our industry has experienced in many and enhanced productivity into the future. It has promotion. In fact, we spent more than $1 billion on
financial results and increased shareowner return. years. World commodity prices for many of our raw become a part of the Kellogg culture for employees advertising this year. We also focused the expertise
The growth was broad-based across categories and materials spiked to all-time highs. Fuel and energy throughout all areas of the organization to of our marketing and promotions groups
geographies. Here are some highlights: inflation was dramatic, but the cost pressure did not continually assess our supply chain and throughout the world on increasing the
• Ex
S a les
Net
shake the solid foundation upon which we have network for potential improvements desirability of our brands and building
pan
al d
rn Gr
• Net sales increased 8% to $11.8 billion. built our business – a business model that is simple, in simplicity, effectiveness, cost consumer brand loyalty. Advertising
te
resilient and designed to deliver sustainable growth. control and quality. Solutions and and consumer promotions build
os
In
• Internal net sales, which excludes the effects of
s
row
Kellogg people rose to meet this year’s challenges system enhancement projects sustainable brands sought by
Pr
currency exchange rates, increased more than 5%.
ofi
P r ic e/Mi x • G
by delivering compelling innovation, exciting new are initiated at all levels of consumers and selected as
t • Incre a s e B r
• Internal operating profit increased by 3%.
SUSTAINABLE
advertising and cost efficiencies around the world. the company, and there is a household mainstays. We
2 3
• Diluted net earnings per share (EPS) grew 10% This dedication to superior execution is characteristic pervasive sense of accountability focused on increasing our
GROWTH
to $2.76. of Kellogg employees everywhere, and we sincerely for keeping our cost structure presence with more targeted
thank each person in our organization for their lean while continuing to produce communications at a lower cost,
• Cash flow was over $1 billion, or 9% of net sales.
ase
commitment to success and their passion for results. We believe this is the right allowing us to invest more in our
an
• Total shareowner return was 7%.
e
cr
our business. way to run our business day-in, best ideas.
d
In
B
ui
• The dividend was increased by 7% starting in the day-out, which is why we account
ld
• ing
on
third quarter. ati
A proven business model. At Kellogg we have an for these up-front investment costs By continuing these significant
• D ri
ve In n o v
unwavering focus on the long-term health of our within our P&L as part of the cost of investments, we are building a
• This was our sixth consecutive year of growth in
business. While we are realistic about the challenges doing business. This practice avoids the company with a solid future of dependable
sales, operating profit and earnings per share.
ahead, our performance in 2007 demonstrates the need for large, one-time charges that impair performance and consistent growth. Our
• We reinvested in the business through increased
strength of our business model and its capacity to earnings quality or obscure actual performance commitment to reinvesting in the business is a core
brand building, innovation capability, expansion
produce growth, even under difficult conditions. for a particular quarter or year. pillar of our sustainable growth business model.
and cost-saving projects, all of which enhance
Despite increased inflation, we continue to
our future sustainable performance
reinvest into our business.
visibility.
David Mackay (Left)
President
Chief Executive Officer
Jim Jenness (Right)
Chairman of the Board
4. We take a global approach to innovation,
expanding and adjusting our portfolio to
meet consumer needs around the world.
TM
Letter to Shareowners
Realistic targets. Every day, we manage our business A clear and focused strategy. The focal points for
expenditures. In 2007 this disciplined financial
Innovation. Kellogg drives development and visibility
in a way that supports its dependable, sustainable strategy again enabled continued and rigorous building our business have remained constant over
of a robust pipeline of new products. In 2007 we
performance. Our long-term targets of low single-digit review of costs while, importantly, funding the the past six years:
continued our commitment to this key growth driver
net sales growth, mid single-digit operating profit investments that will grow and sustain our business.
by increasing our innovation. We take a global
growth, and high single-digit EPS growth encourage • Grow our cereal business
approach to innovation, expanding and adjusting our
Flexibility. Our strong cash flow allows us to actively
Kellogg people to prioritize their activities and make
portfolio to meet consumer needs around the world. • Expand our snacks business
good decisions that support the long-term health make decisions based on what is best for sustaining
More than 270 new products or adaptations of other
• Pursue selected growth opportunities
of our business – not simply hit short-term, our business and for building shareowner return.
successful products were introduced in 2007 alone
unsustainable goals. Realistic targets drive In addition, our cash flow gave us the flexibility
and we generated nearly $2 billion, about
We remain committed to this
the behaviors and decisions that most to repurchase 12.4 million shares of Kellogg
17% of sales, from products launched
simple strategy because it
et Income
ro w N effectively deliver sustainable growth. Company stock, increase the quarterly dividend
within the past three years. These •
•G works. The effectiveness of
Mi
It’s the right way to run our business paid to shareowners and acquire companies in key
results exceeded our long-term ni m
IC
4 5
RO our strategy is proven, and
and is responsible management of geographies or product lines that fit with our strategy.
target of 15% of net sales from
iz e
se
our results in 2007 and
our shareowners’ interests.
innovation and helped drive
re a
Co
the momentum with
re W
I nc
another year of improved sales
MANAGE which we enter 2008
xibility •
orking Capital •
Financial vision. Strong cash
volume, price and mix for
are indicators of its
flow generation. The ability to
Kellogg Company.
continued relevance.
FOR CASH generate cash is an essential
ial Fle
Kellogg people
component of a financially healthy
Our innovation teams around
around the world
anc
company. As a result of strong
the world are focused on
have embraced
Dis
in
net earnings, disciplined capital
developing value-added and
nF
c
our strategy.
ip
ai
expenditures and sound balance sheet
differentiated products that
in
l
int ed
Ma Ca
management, our cash flow in 2007
provide additional sales and/or
p i ta
l Expenditure •
was over $1 billion, delivering again on
improved economics. This focus
our Manage for Cash operating principle.
continually improves our already-strong
Combined with our focused business strategy,
portfolio by improving mix and producing
our disciplined financial strategy creates a solid
higher returns. Strong innovation, backed with
platform for sustaining cash flow for years to come.
solid marketing support, will drive top-line growth
and keep our categories vital. Our commitment to
Disciplined expenditure. Following the Manage for
investing in innovation and research and development
Cash principle keeps Kellogg people around the
is another core pillar of our sustainable growth
world focused on continually exploring strategies
business model. In line with this, we are expanding
for decreasing the amount of cash committed to
the facilities and capabilities of our state-of-the-art
working capital. It is part of the way we manage
global research and development center, the W. K.
our business every day. Furthermore, we are
Kellogg Institute for Food and Nutrition Research. This
committed to carefully planning and prioritizing
is one way we will continue to drive top-line growth.
the amount of cash we spend each year on capital
5. Our business model and our focused
strategy served us well in 2007.
TM
Letter to Shareowners
Entering 2008 with momentum. With our success
Some of our strategic growth leverage Kellogg Company’s sales, grow operating profit, and continue to reinvest
opportunities will show brand-building and innovation and continued investments in 2007, we enter 2008 in our business for future growth. In short, while
tremendous potential right expertise, our understanding with confidence. Commodity and energy prices delivering strong growth in 2007, Kellogg people
away, while others will take of the biscuit and ready-to-eat are projected to remain high and volatile, and around the world have set the stage for another year
time and further investment cereal categories, with UB’s competition in the marketplace will likely intensify. of strong performance in 2008.
to grow. Because we manage existing manufacturing, sales The year ahead will no doubt be challenging.
our business for long-term and distribution infrastructure However, because our business model works, we are Finally, we thank our shareowners for valuing our
performance with realistic to drive continued strong confident in our ability to deliver strong results yet long-term perspective on growth and investment.
targets, we have the flexibility growth of this business. We again in 2008. We are confident we will grow net We are steadfast in our commitment to delivering
to make strategic investments have stringent criteria for sustainable, dependable performance in the future.
that strengthen the health of our assessing growth opportunities, and this investment
company. Late in 2007 we made acquisitions relating was selected for its ability to create value in the long
6 7
to Bear Naked Inc., maker of all-natural granola and term and contribute to the sustainable, dependable
trail mixes, and Gardenburger brand. growth of Kellogg Company.
2007 summary. Our business model and our
Our emerging markets growth strategy moved forward
significantly in 2007. We grew our ready-to-eat cereal focused strategy served us well in 2007. Throughout David Mackay Jim Jenness
market share in Turkey to 22%. Before our 2006 joint the year, Kellogg people around the world President Chairman of the Board
venture with local Turkish food distributor, Ülker, our successfully managed difficult external challenges Chief Executive Officer
market share was just 2%. We are actively exploring – unprecedented commodity price increases and
other international alternatives and have identified continued tough competition – and delivered another
Eastern Europe and Asia as areas where we can year of strong earnings and increased shareowner
enter developing markets with immediate scale and value. Each quarter of 2007, Kellogg Company was
distribution capabilities. faced with higher input costs, and each quarter we
were able to grow our business and increase our
Early in 2008 we acquired The United Bakers investment in cost-efficiency projects. We raised
Group (UB), one of Russia’s largest cracker, cookie our 2007 annual earnings guidance twice during
and breakfast cereal producers. UB’s products, the year and ultimately delivered solid results. This
marketed primarily under the Yantar and Lyubyatovo performance speaks to the power of our business
brands, are a good strategic fit with the Kellogg model, and we remained focused on it despite the
portfolio and expand our presence in international added challenges. In 2007, we continued to reinvest
snacks and cereal markets. into our businesses through increased brand building
and additional cost-saving projects. We continued to
This acquisition is a long-term investment that invest wisely in key growth opportunities in strategic
provides Kellogg with a tremendous platform for categories and geographies. Our innovation pipeline
growth in a large and fast-growing market. We will continues to be substantial and dynamic.
6. By continuing to focus on nutrition, taste
and convenience, Kellogg innovation
really resonated with consumers.
TM
measured category share rising to 2008, we are excited about
Keebler Fudge Shoppe Fudge
Global Operations the move of Kashi snacks (bars,
in 2007. This was driven by
Stripes and Chips Deluxe. We
innovations such as Sandies Butter cookies, crackers) to the DSD
built upon these successes in
Pecan Drops and Keebler Dipping distribution system.
2007 by introducing Right Bites
North America Delights. Echoing this positive
Fudge Shoppe Grasshopper and
Ready-to-eat cereal. In 2007 we Mini-Wheats Strawberry and Rice The Pop-Tarts toaster pastry business
progress was a strong performance
assortment packs.
saw sustained growth in our North Krispies Vanilla cereals, added to the from Famous Amos. continues to be strong and retains a
American Retail Cereal business. strong sales growth. Additionally, category share above 86%. During
Strong performances in our Cracker
Plus, measured channel share grew our largest cereal brand in the Club 2007, we launched Pop-Tarts
In 2007 innovation drove strong
business came from power brands
for the full year to 34.1%, making channel, Special K, experienced sales in Wholesome Snacks with the Printed Fun, debuting with Trivial
including Club, Town House and
this the seventh consecutive year broad growth. performance of Nutri-Grain Fruit & Pursuit and Barbie editions.
Cheez-It, which all grew in dollar
of share growth in the U.S. retail Nut bars, along with new flavors of This exciting innovation allows
sales and measured market share.
ready-to-eat cereal category. Snacks. North American Retail Kellogg’s Crunchy Nut Sweet & Salty consumers to enjoy edible printing
This performance was aided by
Snacks had a very good 2007. Our bars. Special K and Special K Honey on their favorite toaster pastries.
innovation in Snack crackers,
By continuing to focus on nutrition, business, consisting of cookies, Nut bars were also a huge success.
including Club Puffed and Cheez-It
taste and convenience, Kellogg crackers, wholesome snacks, Other snacks that performed well
Stix. All-Bran has a hit innovation
innovation really resonated with fruit-flavored snacks and toaster
8 9
include Kashi snack bars, which
Canada had solid performances
with All-Bran crackers, a strong
All-Bran continues to be one of
consumers. Our innovations, pastries, lapped strong 2-year from the popular All-Bran Snack continue to have significant repeat
performer rated best snack cracker
our strongest global brands, and
including Special K Chocolatey growth rates by building on 11% in Bites, Munch’ems, Nutri-Grain, consumer purchases. Fruit Snacks
by Women’s Health magazine.
we launched All-Bran Strawberry
Delight, proved a big success both 2006 and 7% in 2005. We posted and Kellogg’s Crunchy Nut Sweet & were innovative in the natural/
All-Bran continues to grow in
Medley cereal in the U.S. in January
at breakfast and as an evening 7% internal sales growth to finish organic channel with FruitaBü
Salty bars.
U.S. popularity.
2008. Kashi had another successful
snack. Plus, perennial favorites the year. Smoooshed fruit products and in
year and added to its popular line
Raisin Bran Crunch cereal and Our Special K brand extended its the grocery channel with Stretch
Our Cookie business
with Kashi GoLean Heart to Heart
Special K cereals responded well We’re able to maintain sustainable global reach with protein water and Island fruit leathers and Yogos fruit
was important to our
Blueberry cereal and Kashi GoLean
to our advertising strategies. growth by building existing brands meal and snack bars, showing that flavored snacks. Fruit Flavored
growth, with
Honey Almond Crunch cereal,
and targeting innovation by utilizing “The Difference Snacks were moved into the DSD
which contains DHA omega-3.
Rice Krispies, one of our oldest our DSD (Direct Store Delivery) is K” for many system to provide additional sales
brands, also experienced a strong distribution system. Recently, the consumers. As opportunities and allow these
Throughout the U.S., consumers
year, thanks to the introduction of Advantage Group Performance we look forward products to gain shelf presence.
are having “milk-sippin’ fun”
Rice Krispies with Real Strawberries Monitor rated the Kellogg DSD
with new Kellogg’s Cereal Straws
and our “Childhood is Calling” system #1 among all snack
– launched with Cocoa Krispies and
advertising campaign. Great food companies.
Froot Loops flavors.
innovation continued in kid’s
cereals with Froot Loops Smoothie We increased advertising at
Canada’s cereal business had a
and Corn Pops Peanut Butter, a double-digit rate and had a
strong year. New products such as
which had new advertising particularly good innovation year
Special K Fruit & Yogurt,
campaigns. Each of these with portion-controlled packs. In
All-Bran Guardian, Frosted
innovations lifted base brand 2006 we introduced 100 Calorie
sales as well. Right Bites packs in Cheez-It,
7. Europe’s growth was broad-based across
countries and categories – driven by strong
commercial programs, category-leading
product innovations and a double-digit
increase in advertising investment. Europe
Kellogg Europe turned in another Adult consumption of cereal Our Snacks business in these
TM
solid year in 2007. In what continues to expand across markets is still young and continues
continues to be a challenging the region. Optivita, our heart to expand rapidly, helped by
operating environment, overall health cereal, was launched, and increased availability and inclusion
sales increased mid single-digits, combined with market leader in major cereal programs.
lapping similar growth in 2006. Special K, continued to drive our
Europe’s growth was broad-based
Global Operations
adult business. Performance in France, our second
across countries and categories largest European market, was also
– driven by strong commercial Southern Europe reported the positive with mid single-digit growth
programs, category-leading product strongest growth across the area, in cereal.
innovations and a double-digit with high single-digit sales increases
Frozen and Specialty Channels. Specialty Channels. Growth in our
increase in advertising investment. in both Italy and Spain. With per
Solid performance came from Specialty Channels business was
capita cereal consumption in
Frozen and Specialty Channels, driven by Food Away From Home,
Our two most developed markets, these markets below the
with sales rising 6% for the year, as well as Convenience and
U.K. and Ireland, posted mid levels of Northern Europe, further
building on 8% growth in 2006 Drug channels.
single-digit growth in cereal and growth potential exists.
and 2005.
even stronger growth in snacks.
Success continued with our
We increased our share in a U.K.
Frozen. In 2007 sales in our Frozen strategy to leverage key equities
ready-to-eat cereal catagory that
business grew, driven by a double- for channel relevance. This was
to dinner. With our acquisition of
continued to show strong growth.
digit increase in advertising from clearly illustrated in our successful
Gardenburger veggie foods, we
We also grew share in the cereal
launch of Jump-Starts breakfast kits
2006. Our leading market share will be producing more exciting
bar category in both markets.
in frozen breakfast products grew for the K-12 school segment. This
innovations.
10 11
Programs like our Special K
because of strong innovation in convenient breakfast alternative
“Drop a Jeans Size” proved very
Eggo Blueberry pancakes, Eggo for public schools is designed to
With “7 whole grains on a mission,”
effective in engaging consumers.
waffles and Eggo Stuffed French provide students access to a
Kashi continues to provide
And there was strong response to
Toaster Sticks. In addition, our quality breakfast.
additional growth opportunities
cereal innovations like Special K
healthy waffle segment had solid with its popular frozen line. Kashi
Sustain and Coco Pops Creations.
growth with the launch of And finally, the success of our
waffles are off to a good start, and
Special K Mini Breaks snacks were
Nutri-Grain Cinnamon waffles and Convenience/Drug business
the new frozen entrees and pizzas
introduced in the second half of
Special K Red Berries waffles. continued from leveraging core
have performed above expectations.
the year to a strong start, and both
equities, such as the introduction
We saw a strong response to three
Rice Krispies Squares and
of single-serve Keebler Soft Batch
Our Veggie Food business, under additional entrees and introduced
Rice Krispies cereal enjoyed
the Morningstar Farms brand, cookies for convenience stores.
three new pizza varieties in 2007.
tremendous growth, driven by
continues to perform well. In This, along with broad wins
engaging advertising campaigns.
2007 we added to the popular in the Drug channel through
Another strength is our Club
Morningstar Farms sausage patties efficient participation in key
business, which continued to
with the introduction of Breakfast promotion periods such as back
successfully build the Kashi brand
Starters and Breakfast Bites. Our to school and New Year’s
franchise. The launches of Kashi
consumers continue to “see veggies resolution, also contributed to
frozen entrees and pizzas were key
differently” with creative new our continued success.
to the brand’s continued success
choices like Mushroom Mozzarella in Club.
Veggie Bites. Consumers can now
enjoy meatless diet choices with
our product line from breakfast
8. Our Mexico business has now grown to be our
third largest business, behind the U.S. and U.K.
TM
Global Operations
Latin America Asia Pacific
Kellogg Latin America continued Colombia, Ecuador and Venezuela We continued to strengthen the Sales in Asia Pacific were about flat and Wholesome Snacks were and while total sales declined, we
to grow and showed strong was the result of strong growth relevance of the cereal category for 2007 as a difficult competitive launched in Korea in June 2007. are encouraged by the aggressive
performance through 2007. Our in advertising investment and the with investments in innovation of environment in Australia was offset Our consumer programs were strategy we have in place to move
popular brands like Special K and
Mexico business has now grown rollout of our Snacks portfolio. by strong sales increases across well tested and grounded in strong this business forward in 2008. We
Choco Krispis.
to be our third largest business, the rest of our Asian business unit. consumer insights. We effectively refocused our media spend and
behind the U.S. and U.K. Double- Throughout Latin America, our This year’s growth in Asia was engaged Asian consumers with advertising efforts, and we are
With programs like the Special K
digit sales growth in Brazil, results were driven by strong driven by our existing Ready-to-eat advertising and innovations built putting emphasis on developing a
Challenge, we were able to attract
performance of cereal businesses in Korea, South largely off power brands like more sustainable innovation plan.
All-Bran and Special K.
existing brands like and retain new consumers. We Africa and India, as well as our Australia saw success with healthy
Zucaritas (Frosted continue to build the Special K brands such as All-Bran and Whole
new Wholesome Snacks business
Flakes) and Grain Mini-Wheats cereal. Snacking
brand, including ready-to-eat cereal, in Japan and Korea. Our success Kellogg Company’s growth in India
All-Bran. as well as snack products such as in these categories is based on our was based on continued brand- brands that performed well include
12 13
Special K Delicia (Bliss) Bar. LCM Shakes, Kellogg’s Crunchy Nut
efforts to entice consumers with building investment in our two core
brands, Kellogg’s Corn Flakes and bars and the re-launch of Be Natural
programs that combine global
Chocos. Innovation contributed to
We expanded our presence learnings with local expertise. bars, which have quickly gained a
in Mexico with the growth of growth with the launch of single- 2.2% share. Our Australian business
healthy drinks (All-Bran ready- It was another strong year for Japan serve cereal pouches. is a good one for Kellogg, and we
to-drink). Sales for this business and Korea. Our Snacks business are putting steps in place to support
were significantly above our enjoyed its first full year in Japan, In Australia, we faced strong a strong future.
expectations, driven by excellent competitive headwinds in both
consumer response. Ready-to-eat cereal and Snacks,
