Kellogg is to team up with Singapore agribusiness giant Wilmar International to manufacture and sell cereal and snacks in China.
The US company said the venture would look to tap into growing cereal consumption and the “large growth opportunity” for snacks foods in the country.
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“China’s snack-food market alone is expected to reach an estimated $12 billion by year-end, up 44 percent from 2008,” Kellogg president and CEO John Bryant said.
Both companies will own a 50% stake in the venture, which will be based in Shanghai. The formation of the business remains subject to regulatory approval.
However, Bryant said the deal would boost Kellogg’s business in China, where earlier this year it sold its majority stake in local firm Navigable Foods.
“This joint venture positions our China business for growth and fundamentally changes our game in China,” Bryant said.
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