ANNUAL REPORT 2007

Packaging Efficiency, Continued.

We also look to optimize the use of materials that are recyclable and contain significant recycled content. In fact, the first box of Kellogg's Corn Flakes came off the line packaged in 100% recycled paperboard, and Kellogg has used recycled board for most of our products since 1906 – we are one of the largest users of recycled paperboard in the U.S.

Waste Management.

We are always looking for ways to improve our waste management programs practicing the 3Rs: Reduce, Reuse, Recycle.

Our manufacturing facilities recycle more than 80% of waste generated. At two of our cereal plants, we implemented a program that diverts an additional 1,000 tons of waste per year from landfills to recycling. Our Bremen, Germany, plant sends zero waste to landfill, and our London, Ontario, Canada, plant is not far behind, with more than 95% of the waste generated onsite sent for recycling.

Water Usage.

We are also doing our part to minimize water use. Our Queretaro, Mexico, plant was given the highest award with a "Recognition to Environmental Excellence," which will be awarded to the company from President Calderon. The plant reuses 57 million gallons of water every year. And earlier this year, washing equipment was redesigned to reduce water use by 7 million gallons.

Where We Are Going.

In 2007 we implemented several innovative campaigns to promote the restoration of natural resources.

In Ireland, Kellogg's Corn Flakes "Give the Gift of Trees" campaign has donated more than 45,000 trees to the charity Bóthar. To see a rolling ticker that provides regular updates on the number of trees donated, please visit www.kelloggs.ie/whatson/makealifeshine. The site also provides more information about the positive impact this project will have on communities in Africa.

In the U.S., Stretch Island Fruit Co., makers of FruitaBü fruit snacks, is helping fund the efforts of the Fruit Tree Planting Foundation. Orchards will be donated to public schools in low-income areas throughout the U.S. to provide generations of students and teachers with healthy nutrition options and environmental education opportunities. The brand kicked off the partnership with the Fruit Tree Planting Foundation with three orchard plantings in 2007 and plans to fund the planting of 25 to 30 orchards by the end of 2008.

We recently formed a cross-functional Environmental Stewardship Council to further drive our sustainability efforts. Beginning in 2008 we are committed to providing greater transparency to our shareowners on the environmental impact of our business. Although we have many things to be proud of, we realize we are just beginning this challenging journey toward becoming an environmentally sustainable company.

Please visit www.kelloggcompany.com for more information and updates on our environmental sustainability efforts.

print this page section: previous section next section page: previous page next page