Kellogg, Wilmar partner for j.v. in China
BATTLE CREEK, MICH. — Kellogg Co. and Wilmar International Ltd. have entered a joint venture for the sale, manufacturing and distribution of cereal and snacks in China.
“China’s snack-food market alone is expected to reach an estimated $12 billion by year-end, up 44% from 2008,” said John Bryant, president and chief executive officer for Kellogg. “To capture this growth, we will leverage the key strengths Kellogg and Wilmar bring to the partnership — the globally recognized Kellogg’s and Pringles brands and deep category knowledge; scale and local market experience and our mutual commitment to consumer-focused innovation.”
Wilmar will contribute infrastructure, supply chain scale and sales and distribution networks in China, and Kellogg will contribute a portfolio of brands and products. The joint venture will use the Kellogg’s and Pringles brands.
The joint venture is a 50/50 agreement, and Yihai Kerry Investments, Co., Ltd, Wilmar’s wholly-owned subsidiary in China, will participate in the joint venture. The joint venture company will be headquartered in Shanghai, and launch of the venture is subject to regulatory approvals.
Founded in 1991, Wilmar International Ltd. is Asia’s largest agribusiness group and is among the largest listed companies by market capitalization on the Singapore Exchange. The company’s business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, and grains processing. Wilmar has more than 400 manufacturing plants and a distribution network covering China, India, Indonesia and 50 other countries.