ANNUAL REPORT 2007


Latin America

Kellogg Latin America continued to grow and showed strong performance through 2007. Our Mexico business has now grown to be our third largest business, behind the U.S. and U.K. Double-digit sales growth in Brazil, Colombia, Ecuador and Venezuela was the result of strong growth in advertising investment and the rollout of our Snacks portfolio.

Throughout Latin America, our results were driven by strong performance of existing brands like Zucaritas (Frosted Flakes) and All-Bran.

We continued to strengthen the relevance of the cereal category with investments in innovation of popular brands like Special K and Choco Krispis.

With programs like the Special K Challenge, we were able to attract and retain new consumers. We continue to build the Special K brand, including ready-to-eat cereal, as well as snack products such as Special K Delicia (Bliss) Bar.

We expanded our presence in Mexico with the growth of healthy drinks (All-Bran ready-to-drink). Sales for this business were significantly above our expectations, driven by excellent consumer response.

Global Operations, Continued

Our Mexico business has now grown to be our third largest business, behind the U.S. and U.K.

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