Whole grain and low fat drive Kellogg innovation

The company has invested $40m in expanding W.K. Kellogg Institute for Food and Nutrition Research (WKKI) in Michigan, and has launched a host of innovative products for the US and worldwide, tapping into consumer demand for nutritious products. "In 2007, approximately 17 percent of net sales or almost $2bn were delivered through innovations launched in the last three years,"​ said Donna Banks, senior vice president of global innovation. "We're very excited about the expansion of our WKKI facility and about our new product offerings launching this year." ​​The company is also increasing its Morningstar Farms range, saying it now offers more quick dinner options for busy families, as well as adding to its snacks collection. Cereals ​​The World Health Organisation's (WHO) latest projections indicate that globally, in 2005, approximately 1.6bn adults were overweight and 400m were obese. It further predicts that by 2015, 2.3bn adults will be overweight and more than 700m will be obese. In a recent survey conducted by Datamonitor, 65 per cent of Europeans and Americans said they made active attempts to more healthily in 2005-2006. However, at the same time, respondents said taste was the most important factor in food choices, showing a demand for healthy indulgence. Kellogg has adapted its Special K brand to include a cinnamon pecan variation. It said this offers more taste options to people wanting to maintain a healthy weight. Similarly, it has introduced an All-Bran Strawberry Medley and additions to its Special K bars, again extending choice. For children's cereals, the company has made well-known cereals healthier. It has introduced a Frosted Flakes Gold and Animal Planet Wild Animal Crunch, which both contain 10 grams of whole grain. Whole grains have received considerable attention in the last year, especially in the US where the FDA permits foods containing at least 51 percent whole grains by weight and are low in total fat, saturated fat, and cholesterol to carry a health claim linking them to a reduced risk of heart disease and certain cancers. Dinners and snacks ​​Datamonitor's recent study also presented statistical results that showed 35 per cent of consumers are choosing at least one healthy snack every day. Consumption of healthy snacks is expected to rise by 9 per cent by 2011 as people continue to lead busy lives that require eating on the go. Kellogg seems to be directing innovative products to these trends, introducing, for example, sugar free snacks and cookies in cups that break apart from each other for easy portable snacks. It has also extended its Morningstar Farms range, for dinner options that are intended to be quick yet nutritious. New products include veggie cakes, veggie patties and French toast waffles.​ Kellogg Company has sales of nearly $12bn in 2007. It said this makes it the world's leading producer of cereals and a major player in convenience foods.