Kellogg USA (NYSE: K) and Salton, Inc. (NYSE: SFP) announced today that they have signed a Letter of Intent to enter into a joint marketing alliance. The initial products lines involved in the alliance include Kellogg’s® Pop-Tarts® Toaster Pastries and Eggo® Waffles, and Salton’s Toastmaster® toasters and toaster ovens.
“This alliance with Salton will provide both companies with an opportunity to reach more consumers and connect Pop-Tarts® and Eggo® products with the way they are best prepared and enjoyed – warm from toasters,” said John Cook, Executive Vice President of Kellogg Company. “We are also excited about the future innovation that can come from a partnership.”
As part of the agreement, Kellogg and Salton will launch several joint marketing initiatives for Pop-Tarts®, Eggo® and Toastmaster® products, including print and broadcast advertising, joint trade and on-line consumer promotions, and couponing. Kellogg and Salton will also collaborate on creating Pop-Tarts® and Eggo® branded toasters, which would be promoted on Kellogg’s product packaging and sold through retail channels.
Leon Dreimann, Chief Executive Officer of Salton said, “We are delighted with our new alliance with Kellogg and the opportunities we will have as a result. While both companies will certainly benefit from our new agreement, we look forward to increased exposure for Toastmaster® as we align ourselves with the ever-popular Pop-Tarts® and Eggo® brands. This alliance comes at a fortuitous time as we have recently reintroduced the Toastmaster® brand with a new logo and an array of exciting new products.”
About Kellogg Company
With sales of nearly $7 billion, Kellogg Company is the world’s leading producer of cereal and a leading producer of grain-based convenience foods and vegetable-based meat alternatives. The company’s brands include Kellogg’s® Special K®, Rice Krispies®, Eggo®, Pop-Tarts®, Nutri-Grain®, and Morningstar Farms®. Kellogg icons such as Tony the Tiger(TM) and Snap!Crackle!Pop!(TM) are among the most recognized characters in advertising. Kellogg’s products are manufactured in 20 countries and marketed in more than 160 countries around the world. For more information, visit the Kellogg web site at www.kelloggs.com.
About Salton, Inc.
Salton, Inc. is a leading domestic designer, marketer and distributor of a broad range of branded, high quality small appliances, tabletop products and personal care/time products. It’s portfolio of well- recognized owned and licensed brand names includes Salton®, Toastmaster®, Maxim®, Breadman®, Juiceman®, George Foreman Grills®, White-Westinghouse®, Farberware®, Melitta®, Block®, China, Atlantis®, Sasaki®, Rejuvenique®, and Ingraham®.
Certain matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These factors include: the integration of Toastmaster, including the failure to realize anticipated revenue enhancements and cost savings; the Company’s relationship and contractual arrangements with key customers, suppliers and licensors; the risks relating to pending legal proceedings; cancellation or reduction of orders; the timely development, introduction and customer acceptance of the Company’s products; dependence on foreign suppliers and supply and manufacturing constraints; competitive products and pricing; economic conditions and the retail environment; the availability and success of future acquisitions; the Company’s degree of leverage; the risks related to intellectual property rights; year 2000 issues and other risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings.