kellogg

Kellogg logo
Flickr user EthelRedThePetrolHead / Flickr

Lobbyists aren't the most well liked people, but George Franklin, attorney and former lobbyist who became the Vice President of World Wide Government Relations for the Kellogg Company, would like to change your perception of them.

Franklin is currently the head of Franklin Public Affairs in Kalamazoo and recently wrote a memoir about his time in Washington entitled "Raisin Bran and Other Cereals: 30 Years of Lobbying for the Most Famous Tiger in the World."

Ben Alman

Michigan cereal maker Kellogg announced a broad initiative today to tackle a number of environmental issues.

The company says its efforts will be focused in two areas:

  1. Responsible sourcing, and
  2. Conserving natural resources.

The company says it will “responsibly source its top 10 ingredients and materials by 2020, and validate compliance across all direct suppliers by 2015.”

They also say they will work to be more efficient with their packaging materials and will continue to work on reducing how much energy is used in making their products.

You can read more about all their “Global Sustainability 2020 Commitments” here.

Diane Holdorf is the the company's chief sustainability officer.

The company plans to educate and give resources to its suppliers to be more energy efficient as well as reduce water use and maintain healthier soil.

"We're really trying to look very holistically at the business and what makes sense, not just for us and what's right for the environment and society, but also for our consumers, our customers and our other stakeholders, knowing that not only is it what we expect of ourselves, but it's what others expect of us as well," Holdorf said.

More from John Flesher of the Associated Press:

Under the plan, the Battle Creek-based food products manufacturer will require key suppliers such as farms and mills to measure and publicly disclose their greenhouse gas outputs and targets for reducing them. The company said it will report annually on those emissions and include climate and deforestation policies in the company's code of conduct for suppliers.

Earlier this year, Oxfam International was critical of food companies for not doing enough to combat climate change. They called the Kellogg Company and General Mills "climate laggards."

Oxfam praised this latest effort by Kellogg. 

– Alyse Guenther, Michigan Radio Newsroom

*This post was updated.

NEW YORK (AP) - Kellogg says it will no longer use the "All Natural" or "Nothing Artificial" labels on certain Kashi products as part of an agreement to settle a class-action lawsuit.

The company, based in Battle Creek, Michigan, says it will also pay $5 million to settle the suit.

In an emailed statement, Kellogg Co. says it stands by its advertising and labeling practices but that it would change its formulas or labels nationally by the end of the year.

Ben Alman

Update 10:11 a.m.

A Kellogg Co. spokesperson said it's too early to tell how these cuts will affect the workforce in Michigan.

The cuts are coming as part of a "global efficiency and effectiveness program" called "Project K."

Kris Charles of Kellogg sent us this statement:

"Project K is a significant, four-year, global program that will reshape our cost structure and serve as a catalyst for our growth strategy.  The likely outcome of this global initiative is that by the end of 2017, we estimate that Kellogg will have approximately 7 percent fewer employees worldwide than we do today.  We aren’t disclosing further specifics about Project K, however, this isn’t a one-size-fits all initiative.  Each of Kellogg Company’s geographic regions and functions will implement the initiatives that make the most sense to enhance efficiency and effectiveness. It’s too early to estimate potential impacts in Michigan or the Battle Creek area at this time."

9:19 a.m.

Kellogg says it will trim its global workforce by 7 percent as part of a cost-cutting plan, with the cereal maker citing weaker-than-expected sales for the year.

The company called the changes "a global four-year efficiency and effectiveness program" in their press release.

The maker of Frosted Flakes and Eggo waffles said it expects earnings per share for the year to be toward the lower end of its previous forecast.

The workforce reductions will take place by 2017.

For the quarter, Kellogg Co. says it earned $326 million, or 90 cents per share. Not including one-time items, it earned 95 cents per share, which was above the 89 cents per share Wall Street expected.

A year ago, the company earned $318 million, or 89 cents per share.

Revenue slipped to $3.72 billion and was short of the $3.73 billion analysts expected.

Michigan Radio's Steve Carmody will have more on how the cuts could affect workers here in Michigan. The company is headquartered in Battle Creek, Michigan.

Battle Creek-based cereal maker Kellogg has agreed to pay a big fine for violating the federal Clean Air act.

The violations occurred at Kellogg plants in Battle Creek and Grand Rapids.   The government cited the cereal maker for operating without necessary permits and exceeding federal emission levels.

Some of the violations date back to 1993.  The most recent violation took place in 2007.

Kellogg's

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."

(courtesy of the Michigan Guard)

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.

user thedeliciouslife / Flickr

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:

Ben Alman

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.