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March 16, 2021

Kellogg to invest in Pringles plant in Belgium

The US cereal and snacks giant is investing at one of the two factories it has in Europe producing Pringles.

By Dean Best

US cereal and snacks giant Kellogg is investing at one of the two factories the company has in Europe producing Pringles.

Kellogg is spending EUR30m (US$32.7m) on work at its plant in the Belgian city of Mechelen, which manufactures Pringles that go on sale in Europe, north Africa and the Middle East.

Part of the work will see a new fryer installed at the facility, which Peter Vanpuyvelde, the plant’s operation manager, said would “increase throughput”.

The first phase of the investment starts at the end of the year, with a second phase beginning in 2023.

Kellogg’s plant in Mechelen is one of seven Pringles factories it has worldwide. The other site in Europe is in the Polish town of Kutno.

When Kellogg reported its 2020 financial results last month, chairman and CEO Steve Cahillane said Covid-19 had led to "softness in snacks shipments" in Europe during the second and third quarters of the year. He added the cancellation of the European Championships football tournament "made it more difficult to lap previous year's enormously successful Pringles summer marketing programmes".

However, Cahillane said Kellogg's Pringles business in Europe "rebounded nicely" during the last three months of the year. "We finished 2020 with a collective share gain in our top eight markets led by each of our top three markets – the UK, Germany, and Russia," he told analysts and investors.

Looking at the prospects for Kellogg's snacks business in Europe this year, he added: "Europe enters 2021 with good momentum. Our snacks business is on the upswing and we have exciting innovation plan for Pringles, including a line of sizzling hot flavours and our commercial plan includes exciting activation around gaming and the rescheduled Euro Cup soccer tournament."

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