Kelloggs’ mixed fortunes
CEREAL manufacturer Kellogg saw mixed fortunes at its two major UK businesses, newly-filed accounts reveal.
The figures for 2008 for manufacturing unit Kellogg Company of Great Britain and Kellogg Marketing and Sales Co (UK) reveal strong grow in profits on the sales and marketing side, while earnings dipped in manufacturing.
Both units are registered at Talbot Road, Old Trafford, Manchester. The world-famous maker of Cornflakes has a long history in the North West – last year its Trafford Park based manufacturing plant celebrated its 70th anniversary.
Around 330 people are employed within the sales and marketing function, while the manufacturing business has 1,125 employees, the accounts show,
In the period from December 30 2007 to January 3 this year the sales and marketing business – which covers UK and also parts of Europe, Africa and the Middle East, saw profits rise from £2.8m to £8.4m om sales of £627.9m, up 10.7% at £627.9m.
Bosses anticipate “mid single digit growth” in the ready-to-eat cereal market this year.
The directors’ report says: “Competition in the UK ready to eat market remains intense. The company welcomes such a high level of competition, believing that its philosophy of striving for excellence and value for money in every aspect of its business will continue to prove successful in such an environment in the long term.”
The figures for the Kellogg Company of Great Britain – which manufactures products for group under a five-year deal with Irish sister company, Kellogg Europe Trading, show profits falling from £21m to £16m on turnover of £116m, down £127.3m.
The supply contract is due to expire in January 2010 and with the renewal coming up bosses launched an efficiency drive at the Trafford Park site, which has involved some voluntary redundancies, shift pattern changes and plant modernisation.
Looking ahead the directors said: “We expect the current level of business to be sustained for the next 12 months. The company’s consignment manufacturing agreement with Kellogg European Trading is due for renewal by 2 January 2010.
“The company is confident that its continued cost efficiencies will help secure its renewal.”
