Kellogg Acquires Specialty Cereals Pty Limited, a Leading Natural Cereal Manufacturer in Australia

    BATTLE CREEK, Mich., Sept. 18 /CNW/ -- Kellogg Company (NYSE:   K), the
world's leading producer of cereal and a leading producer of biscuits and
convenience foods, today announced that it has acquired Specialty Cereals Pty
Limited, a privately-owned manufacturer of natural ready-to-eat cereals based
in Frenchs Forest, Sydney, Australia. Founded in 1988, Specialty Cereals
markets products under the Vogels, Wild Oats, and Cerevite brands.
    Terms of the transaction were not disclosed.  With Specialty Cereals' net
sales of approximately $17 million for the 2007/2008 Australian Financial
Year, the transaction is not expected to have a material impact on Kellogg
Company's 2008 operating profit.
    "Consistent with our strategy, we continue to pursue the right kind of
opportunities to grow our business," said David Mackay, President and Chief
Executive Officer, Kellogg Company. "The acquisition of Specialty Cereals
provides Kellogg Australia with an entry into the fast-growing Natural Foods
    "The acquisition cements a 20-year relationship between our companies, as
Specialty Cereals was already a co-manufacturer and co-packer for Kellogg,"
added David Denholm, President Kellogg Asia Pacific. "Their brands are a great
fit with the Kellogg Australia portfolio and we're thrilled to welcome their
employees to the Kellogg family."
    The acquisition adds a small manufacturing facility to the Kellogg
Company's Australian manufacturing network, with 51 employees. The business
will continue to be headquartered in Frenchs Forest, Sydney, and will report
into Kellogg Company's Asia Pacific business unit.
    Kellogg will leverage its brand-building and innovation expertise, its
understanding of the cereal category, and Specialty Cereals' leadership in the
Australian natural foods segment to drive continued strong growth of this
    With 2007 sales of nearly $12 billion, Kellogg Company (NYSE:   K) is the
world's leading producer of cereal and a leading producer of convenience
foods, including cookies, crackers, toaster pastries, cereal bars, frozen
waffles and meat alternatives. The company's brands include Kellogg's(R),
Keebler(R), Pop-Tarts(R), Eggo(R), Cheez-It(R), Club(R), Nutri-Grain(R), Rice
Krispies(R), Special K(R), All-Bran(R), Mini-Wheats(R), Morningstar Farms(R),
Famous Amos(R), Ready Crust(R) and Kashi(R).  Kellogg products are
manufactured in 19 countries and marketed in more than 180 countries around
the world.  For more information, visit the Kellogg Company website at

For further information:

For further information: Australia/New Zealand Media: Rebecca Boustead
+61-2-9384-5414; North America Media: Kris Charles, +1-269-961-3799; Europe
Media: Paul Fitzsimmons, +353-1-883-0604; Analyst Contact: Joel Wittenberg,
+1-269-961-9089, all for Kellogg Company Web Site:

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