...Strong Brands but Slow Growth: Kellogg Company's (Kellogg) ratings incorporate its leading market shares, strong brand equities in breakfast foods and snacks, as well as ample liquidity. The company is diversified geographically, with nearly 40% of sales outside the U.S. However, with 85% of sales in North America and Europe, Kellogg's growth has been hampered by this large exposure to mature markets. The company's May 2012 Pringles acquisition for $2.7 billion provided it with a stronger snacks platform for product and geographic expansion, but brought lower margins. Project K's Substantial Cost: In November 2013, Kellogg announced Project K, a global four- year efficiency and effectiveness program. Kellogg expects total pretax program charges of $1.2 billion¡$1.4 billion plus about $300 million in incremental capital expenditures. Total cash costs are approximately $1.2 billion to $1.4 billion. The company estimates annual pretax savings of $425 million¡$475 million by 2018, with more...
