Thursday, February 18, 2010

Kellogg Says Kashi May Grow to $1 Billion Brand in 5 Years

"Feb. 17 (Bloomberg) -- Kellogg Co.’s Kashi, the health- foods brand that makes Heart to Heart cereal, will increase sales by about two-thirds within five years, to more than $1 billion, said David DeSouza, the unit’s general manager.

Kashi, whose motto is “Seven Grains on a Mission,” had sales of about $25 million when Kellogg acquired it in 2000 for $33 million. Last year, it posted revenue of more than $600 million, David Mackay, Kellogg’s chief executive officer, said in a Feb. 10 telephone interview. Kellogg, the largest U.S. maker of breakfast cereal, had $12.6 billion in revenue last year and expects sales to grow 2 percent to 3 percent this year."

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