Kellogg’s to Break into Kenya’s Food Market This Year
As part of its emerging markets strategy, American multinational food manufacturing company, Kellogg’s, is spreading its business to East Africa, starting with Kenya, the region’s largest economy.
Last year, the New York Stock Exchange-listed firm appointed the former managing director of East African Breweries (EABL), Gerald Mahinda, as the head of operations in the region.
Rumored to explore possible partnership opportunities with a local investor, Kellogg’s is set to break into the Kenyan market owing to the fact that demand for ready-to-eat cereals has been on a relative increase with the country’s newly attained middle-income economy status. “The real opportunity is in the growing wealth in Africa, especially the middle class and the changing lifestyles that make our products attractive,” said Mr. Amati Banati, Kellogg’s president in charge of Asia Pacific.
Business Insider reported that an undisclosed source said, “The focus is to tap opportunities in the East African market and use Kenya as the central avenue to deepen its products’ penetration in the region.
” Persons familiar with the multinational food manufacturing company’s entry into the market say the company is in the process of finalizing regulatory approvals before they formally break the news. “The operations are set to start early this year given the company has made good progress in terms of regulatory aspects,” said the source.
With an asset base of $15.5 billion, Kellogg’s markets its food products in over 180 countries worldwide. The company’s brands ranges from Froot Loops, Pop-Tarts, Corn Flakes, Cheez-It, Frosted Flakes, to Rice Krispies, Keebler, Pringles, Nutri-Grain, Cocoa Krispies, and a host of others. In Kenya, the company intends to produce and market their ready-to-eat Pringles, Coco Pops, Rice Krispies, Fruit Loops, and Frosties.
Last year, Kellogg’s ranked number 65 on Forbes list of World’s Most Valuable Brands.