Kellogg is forming a joint venture to brings its cereals (including Tony… (Associated Press )
How do you say "They're grrrrreat!" in Chinese?
Kellogg, maker of Frosted Flakes, Pop-Tarts and Eggo waffles, among numerous other not-so-great-for-you snacks and breakfast foods, has formed a joint venture to sell its stuff in China as early as next year.
The company now makes most of its money in North America, where, coincidentally, an obesity epidemic is spreading among kids and adults. But Kellogg has determined that the real action going forward is in the developing world, where diets are still largely traditional and thus are relatively low in sugar and sodium.
Kellogg says China is expected to be the largest food and beverage market within the next five years. Although cereal isn't exactly a staple of Chinese households, the company says consumption is rising as milk becomes a more common part of the diet.
Kellogg is also excited about the prospects in China for Pringles chips, which the company acquired from Procter & Gamble earlier this year.
That deal made Kellogg the world's second-biggest maker of salty snacks after PepsiCo's Frito-Lay. Kellogg's other salty snacks include Cheez-It, Keebler's Club crackers and its new Special K crackers.
According to the Organization for Economic Cooperation and Development, only about 3% of Chinese adults are currently obese, compared with a rate of about 34% in the United States.
Apparently it's time to welcome our Chinese friends into the club.