Tagged: kellogg

Three days ago, Battle Creek cereal maker Kellogg's announced a voluntary recall of Frosted and Unfrosted Mini-Wheats.

From Kellogg's:

We have initiated a voluntary recall due to the possible presence of fragments of flexible metal mesh from a faulty manufacturing part. Recalled products include only Frosted Mini-Wheats Bite Size Original and Mini-Wheats Unfrosted Bite Size with the letters KB, AP or FK before or after the Best If Used Before date.

You can see a list of UPC codes on the Kellogg's website.

The Wall Street Journal reports on how much the recall will cost the company:

Kellogg Co. K +0.54% said Wednesday it would take a charge of up to $30 million to cover the recall of Mini-Wheats cereal in the U.S. due to possible contamination by pieces of metal mesh.

Retailers have been contacted about the recall of 2.8 million packages of Frosted Mini-Wheats Bite-Size Original and Mini-Wheats Unfrosted Bite Size, which are being pulled from store shelves. Kellogg blamed the contamination on "a faulty manufacturing part," and said no injuries had been reported.

The WSJ reports the metal mesh problem comes after the company went through another recall in 2010 for a variety of cereals.

The paper reports the company is spending hundreds of millions of dollars to fix its supply chain, "which suffered deep cost cuts, leaving several manufacturing facilities overworked and too few people overseeing operations."

HARRISON TOWNSHIP, Mich. (AP) - U.S. Rep. Sander Levin says he's hopeful that a Pentagon decision to add 24 C-130 air transport planes will offset sharp job cuts planned at Selfridge Air National Guard Base.

Defense Secretary Leon Panetta recommended Tuesday that the military budget the Air National Guard planes and the 2,200 personnel needed to support them.

Levin says the announcement "is a positive step in the battle for equitable treatment of the guard." The Royal Oak Democrat says he'll press to see that the C-130s are based at Selfridge, 20 miles northeast of Detroit in Macomb County's Harrison Township.

The Obama administration budget for fiscal year 2013 now calls for cutting a net 450 part-time and 200 full-time jobs at Selfridge with the relocation of two-dozen A-10 Thunderbolt II air-to-ground attack aircraft.

Some small businesses and aspiring entrepreneurs in Detroit could get a boost from a $2.4 million Kellogg Foundation grant.

The grant will help establish the Global Detroit Neighborhood Development Collaborative, a micro-enterprise lending and training programs in three city neighborhoods for three years.

Former Detroit State Representative Steve Tobocman runs the larger Global Detroit initiative, which will oversee the program.

The Battle Creek based Kellogg Co. is moving to make more inroads into the snack world.

The company plans to purchase the Pringles brand, according to the Associated Press:

Kellogg has popped up to buy the Pringles chip brand from Procter & Gamble for $2.7 billion after a similar deal with Diamond Foods was derailed by accounting problems and an executive shakeup at Diamond.

The addition will help Kellogg with its goal of becoming as big globally in snacks as it is in cereal. The Pringles business will add to Kellogg’s stable of snack brands that include Keebler, Cheez-It and Special K Cracker Chips.

In a statement, Kellogg President and CEO John Bryant said:

"We are excited to announce this strategic acquisition. Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company. We are delighted to welcome the employees of the Pringles organization to Kellogg. Their collective passion and commitment has resulted in Pringles' well-deserved acclaim as one of the most recognized brands in the world."

Kellogg says it expects to complete the Pringles acquisition during the summer.

Kellogg Cereal Company is asking a non-profit archaeology group to reconsider its bid to trademark a toucan logo.

From the Associated Press:

Kellogg Co. is asking a group working to defend Mayan culture to reconsider its logo, saying consumers can confuse it with Toucan Sam, the mascot of its Froot Loops cereal.

An attorney for the world's largest cereal maker has sent a letter to the nonprofit Maya Archaeology Initiative saying Kellogg opposes the group's bid to trademark the logo. The attorney suggests a settlement that would limit the group's use of the image.

The Maya Archaeology Initiative, based in San Ramon, says there is little similarity. It says its logo is based upon a realistic toucan native to Mesoamerica, while Toucan Sam is a cartoon character with the coloring of Froot Loops.

The organization says that it hopes can resolve the matter with Kellogg, which is based in Battle Creek, Michigan.

So, what do you think? Does Kellogg have a legitimate gripe? Here's a little Toucan Sam to refresh your memory:

I just spoke with a food industry analyst who says Kellogg's next CEO will face challenges right from the start. 

 Erin Swanson is a food industry analyst with Morningstar Financial.  She says the challenge is to speed up development of new Kellogg products.

“Kellogg has been challenged over the past several months, or year by intense competitive pressures.”  

Battle Creek's big employer is undergoing a big change. David Mackay is stepping down as Kelloggs CEO.