Why cereal maker Kellogg plans to invest $420m in Nigeria


Kellogg Co topped Wall Street forecasts for first-quarter profit and sales on Thursday.

By Reuters - May 3, 20180
(Reuters) – Fruit Loops cereal maker Kellogg Co topped Wall Street forecasts for first-quarter profit and sales on Thursday, boosted by stronger sales of snacks including Pringles chips and protein bars.

Though Kellogg has lowered the sugar content in many of its popular cereals to win back health-conscious customers, much of the Battle Creek, Michigan-based food company’s business today is driven by sales of snacks such as Pringles chips and RXBARs.

Highlighting the falling demand for cereal in the United States, Kellogg on Thursday also announced a $420 million investment in Nigeria’s Tolaram Africa Foods, its distributing partner in Africa, which makes noodles in addition to cereal.



It is the latest in a handful of deals Kellogg has sealed in the past few years to diversify its business, including the acquisitions of protein bar brand RXBAR and Brazilian snacks group Parati.

The company did not disclose additional financial terms of the Tolaram investment.

“Cereal consumption remained soft, though the company made progress toward stabilizing the key health and wellness brands, including Special K,” Kellogg said in its earnings statement.

Kellogg’s sales rose 5 percent in the first three months of the year, the third consecutive quarterly increase, as shoppers also bought more Eggo waffles and veggie patties in addition to snacks.

Overall sales of $3.40 billion topped analysts’ expectations of $3.30 billion, according to Thomson Reuters I/B/E/S.

Kellogg said it expects net sales to rise between 3 percent and 4 percent in 2018 on a constant currency basis. The forecast includes gains from the Tolaram investment and translates to sales of $13.31 billion to $13.44 billion.

Kellogg’s net income rose to $444 million in the first quarter of 2018 from $266 million a year earlier.

Excluding one-time items, Kellogg earned $1.23 per share, handily beating expectations of $1.08.

Kellogg’s stock rose 3 percent to $58.47 on Thursday morning.

Reporting by Nivedita Balu in Bengaluru; Editing by Sai Sachin

https://www.cnbcafrica.com/news/west-africa/2018/05/03/cereal-maker-kellogg-plans-invest-420m-nigeria/

Another good news for those who wish Nigeria well and are going to partake in the goodness..

Thank God for Buhari.

rusher14:
Thank God for Buhari.

Yes o my brother. Thank God. The way Buhari recovered from his illness between 2016/17, I know that God indeed wanted to use him to strengthen and build Nigeria.
It can only be God.

deji17:


Yes o my brother. Thank God. The way Buhari recovered from his illness between 2016/17, I know that God indeed wanted to use him to strengthen and build Nigeria.
It can only be God.

Personally, I think he was poisoned.
Looked like he had a debilitating condition and usually, at his age, one scarcely recovers.

With a poison however it could be easier.

Away from all that, it saddens me how Nigerians can vilify him when the obvious devils are giving a bye.

Example - Budget for 2018 still not passed despite being in the hands of the National Assembly since November 2017.

It amazes me how the likes of FFK who has never held a job before outside of government, who hasn't worked since 2015 can still afford a life of splendour yet having supporters.

It amazes me how in 2014 PDP was trying to prevent INEC from using the PVC to conduct elections yet they have supporters.

How Fayose and Jonathan prevented members of the opposition from monitoring elections in Ekiti. They were turned back at the limits of the state.

It amazes me how despite the voice recordings, the confession of accomplices in Ekitigate, the money trail, Fayose can still have supporters.

How can people wish for their country to be like the advanced nation yet support Patience Jonathan having 15 million dollars in a single account?

Naija people deserve suffer.

rusher14:


Personally, I think he was poisoned.
Looked like he had a debilitating condition and usually, at his age, one scarcely recovers.

With a poison however it could be easier.

Away from all that, it saddens me how Nigerians can vilify him when the obvious devils are giving a bye.

Example - Budget for 2018 still not passed despite being in the hands of the National Assembly since November 2017.

It amazes me how the likes of FFK who has never held a job before outside of government, who hasn't worked since 2015 can still afford a life of splendour yet having supporters.

It amazes me how in 2014 PDP was trying to prevent INEC from using the PVC to conduct elections yet they have supporters.

How Fayose and Jonathan prevented members of the opposition from monitoring elections in Ekiti. They were turned back at the limits of the state.

It amazes me how despite the voice recordings, the confession of accomplices in Ekitigate, the money trail, Fayose can still have supporters.

How can people wish for their country to be like the advanced nation yet support Patience Jonathan having 15 million dollars in a single account?

Naija people deserve suffer.

No bro, I dont think Nigerians deserve to suffer. Yes, the minority looters cum wailers deserve to suffer. Many Nigerians are victims of the circumstances . Sometimes , they ignorantly follow the minority loud wailers in wailing, but they are just victims.

Despite all the social media noise, you know very well that majority of Nigerians are solidly behind Buhari. They know the people like FFK, and GEJ who almost bankrupted the nation and they know that they can never be on the same page with them...

deji17:


No bro, I dont think Nigerians deserve to suffer. Yes, the minority looters cum wailers deserve to suffer. Many Nigerians are victims of the circumstances . Sometimes , they ignorantly follow the minority loud wailers in wailing, but they are just victims.

Despite all the social media noise, you know very well that majority of Nigerians are solidly behind Buhari. They know the people like FFK, and GEJ who almost bankrupted the nation and they know that they can never be on the same page with them...

Agreed but it is sometimes frustrating.

rusher14:


Agreed but it is sometimes frustrating.

Bro, Nigeria is marching forward. Who no know, go know. Forward ever, backward never..
Let the wailers wail, their existence depends on it. If they dont wail, they will die.

Thank God they are in the minority and the census, sorry the election of February 2019 will confirm how insignificant the wailers/3rd force/PDP.g/Looters and their supporters are..

That their N50 coco pops was a hit. They targeted low income families and that's where the cash is, just ask Dano milk.

With that terrible cornflakes?

thanks to the small sachet!

ALL THESE "TO" THIS & THAT, IT'S HIGH TIME WE STARTED HEARING "HAS DONE".....

REGARDS....

They should watch their money swim and drown in the Ocean of Nigeria. Maybe if Dangote doesn't invest in the same business, they might survive...
They should better invest in Ghana rather than the shithole Nigeria.

dominique:
With that terrible cornflakes?

Is it only cornflakes? All their made in Nigeria products are quack. Cocopops and risecripies taste very bitter.

To be honest, their UK made products are good though expensive.

rusher14:
Thank God for Buhari.

Can you please explain how this is linked to Buhari who said that the youths are uneducated and therefore unemployable
Ayam not understanding.

Abeg all Kelloggs know is Packaging. Their cornflakes is a good example. Tastes good but NASCO cornflakes tastes way better.

Temple1288:
They should watch their money swim and drown in the Ocean of Nigeria. Maybe if Dangote doesn't invest in the same business, they might survive...
They should better invest in Ghana rather than the shithole Nigeria.

Shittyhole nation as confirmed by our president who called the youths whom he is responsible for, as lazy?
Buhari is a monumental error of gargantuan proportions that must be corrected in 2019!
Let us get our PVCs ready.

Booked 8-)

seguno2:


Can you please explain how this is linked to Buhari who said that the youths are uneducated and therefore unemployable
Ayam not understanding.

He said that, yet, this is d 2nd or 3rd million dollar investment, coming into Nigeria, within d past month.

They claim, he drives out n discourages investors, ds just turned that statement, on its head.


Just, let's watch out for it, Nigeria, is d next big thing, out of Africa. God willing.

Temple1288:
They should watch their money swim and drown in the Ocean of Nigeria. Maybe if Dangote doesn't invest in the same business, they might survive...
They should better invest in Ghana rather than the shithole Nigeria.

How to identify a man destined to fail 101: He points to his father's house with his left finger and he thinks insulting and deriding his nation is the new cool. You can hate your leader, but if you hate your country because of its 'bad leadership, you are a failure!

Kelloggs cornflakes had been said to cause reduction of libido in men (there was also a scientific paper to that). It used to be my favourite back then in school but for years I didn't note any drop in function till I outgrew cornflakes.


http://www.dailymail.co.uk/health/article-3185011/What-Corn-Flakes-masturbation-common-Mr-Kellogg-believed-sexual-desires-caused-disease-invented-plain-cereal-stop-self-pleasuring.html

dominique:
With that terrible cornflakes?

mavinc4u:


Is it only cornflakes? All their made in Nigeria products are quack. Cocopops and risecripies taste very bitter.

To be honest, their UK made products are good though expensive.

1. U both have heard of them n their products, in d country.

2. Who invests $400m+ in a country, where their products aren't welcomed.

As long as they're bringing in FDI, they're highly welcome

Expanding their product line, probably, build a new factory, employ more workers, pay more tax, create more employment opportunities.

The question is why has the quality for the Kellogs dropped significantly. ..just wondering. ..it's below standard. .NAFDAC please ask question

$420m worth of junk and poison.

rusher14:


Personally, I think he was poisoned.
Looked like he had a debilitating condition and usually, at his age, one scarcely recovers.

With a poison however it could be easier.

Away from all that, it saddens me how Nigerians can vilify him when the obvious devils are giving a bye.

Example - Budget for 2018 still not passed despite being in the hands of the National Assembly since November 2017.

It amazes me how the likes of FFK who has never held a job before outside of government, who hasn't worked since 2015 can still afford a life of splendour yet having supporters.

It amazes me how in 2014 PDP was trying to prevent INEC from using the PVC to conduct elections yet they have supporters.

How Fayose and Jonathan prevented members of the opposition from monitoring elections in Ekiti. They were turned back at the limits of the state.

It amazes me how despite the voice recordings, the confession of accomplices in Ekitigate, the money trail, Fayose can still have supporters.

How can people wish for their country to be like the advanced nation yet support Patience Jonathan having 15 million dollars in a single account?

Naija people deserve suffer.

Stop all these wild speculation

poisoned?

There are many possible and plausible explanations some mental health conditions would explain his presentation e,g depression
People do recover at his age when they get good healthcare there is no rule that people must die because they are old

So people do not recover frrom debilitating condtions at his age but they recover from poisoning? See logic