Kellogg Company (NYSE:K)

CAPS Rating: 3 out of 5

The Company and its subsidiaries are engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods.

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Player Avatar whimtrail (< 20) Submitted: 2/8/2010 5:04:49 PM : Underperform Start Price: $45.50 K Score: +43.79

Lack of vision in their product and business develpment on a global basis makes the company stagnant.
The acquisition of Keebler, dated in 2001 has provided some marginal growth and volume increase in Mexico and Latin America. No strong margin sements. Poor performence in Europe, Australasia and North America.
Alternative is Nestle. A research innovative expansion, quality control fully owned and managing suppliers with clear standards and targets around the world.
Financial performence of Nestle has been driven by innovative nutitional driven acquistions and product development centers around the key segments in the world.
Management, as well as boardmember selections during the last 5 years reflect the Nestle aggressiveness while Kellogg's has been "old fashion" as usual. A mid western cereal packaged food business. The leadership changes in 2001 have depleated the opportunities set forth in the late 1990's.
The only major growth generated in Kellogg's comes from the Cashi Brand. Currently following a similar business implementation as the Kellogg branded products.

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