Kellogg Company announced today that it has invested $7 million as a major equity partner in Transora, a new global business-to-business e-marketplace. Using a Transora formula tied to company sales, the $7 million is the maximum Kellogg Company can invest.
Kellogg is among 49 of the world’s leading food, beverage and consumer products companies who have invested nearly $250 million in Transora. “We invested the maximum amount allowable because we believe this idea will transform the consumer products goods industry,” said Carlos M. Gutierrez, Kellogg Company chairman of the board and chief executive officer.
Transora is the first global e-marketplace company owned by the consumer products industry. It will offer services in procurement, customer and consumer marketing, supply chain collaboration and related functions. Transora investor companies currently account for about $350 billion of the $900 billion annually spent by the industry on goods and services.
“The Internet is revolutionizing the global economy,” said Gutierrez. “Our investment in Transora will help improve our efficiency and connections with business partners around the world. This investment gives us a strategic tool to further strengthen our commitment to deliver consistent, reliable growth over the long term.”
With sales of nearly $7 billion, Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of convenience foods. Kellogg products are manufactured in 20 countries and marketed in more than 160 countries around the world.