The anticipated strategic cooperation between Kellogg of the US and Elite of Israel has failed to materialise, following intensive negotiations aimed at enabling Elite, one of Israel’s two leading food manufacturers, to distribute Kellogg’s cereals and launch the production of new food products, all from Kellogg’s multinational kitchen. Kellogg, which owns 26 plants throughout the world, has annual sales amounting to US$8bn.

During the negotiations an Elite executive commented that the anticipated cooperation “will not be limited to the marketing aspect,” referring to Elite’s plans to start manufacturing cereals, a fast growing item in Israel.

However, negotiations between Kellogg and Elite ceased about a week ago. Elite responded, according to a report in today’s Yediot Aharonot, saying that “Kellogg and Elite decided to end their negotiations aimed at examining the potential for cooperation between the two companies.”

Earlier news on the planned JV:

ISRAEL: Elite and Kellogg mull JV
ISRAEL: Israeli elite in cooperation talks with Kellogg