Kellogg is the world’s leading producer of cereal and one of the largest producers of convenience foods with 2010 sales of nearly $12.4 billion. With distribution in more than 180 countries, Kellogg's produces some of the world's most iconic and easily recognizable brands including: Keebler, Pop-Tarts, Eggo and Rice Krispies. As of FY 2010, the company generated 68% percent of its revenues in North America, 18% in Europe, 7% in Latin America, and the remainder in the Asia Pacific region.^[1]

Today, Kellogg faces the most difficult operating environment it has experienced in many years. Prime among the challenges confronting Kellogg are rapidly rising prices for several of the key inputs for its cereal and snack foods, including corn and wheat. Rising energy prices exacerbate high input prices by increasing the cost of transportation and delivery to Kellogg's distributors. Finally, Kellogg faces intense competition from General Mills and Kraft in its core U.S. market where a slowdown in consumer spending, as a result of America's ongoing economic hardships, threatens to hurt sales.

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