Kellogg Company is a diversified business because they offer many different products. I mentioned their products in my last post, but I will state them again to relate it to diversification. Kellogg’s has seven different products, which are bars, beverages, cereal, crackers, fruit flavored snacks, toaster pastries, and waffles, pancakes and syrup. This makes them diversified because their products are not in one specific food area, even though most of them do fall in the breakfast category.
I found a news release from February 15, 2012 on the Kellogg’s website. Kellogg announced that it would be acquiring Procter & Gamble’s Pringles business for $2.695 billion. Kellogg’s decided to acquire Pringles to achieve their goal of building a global snacks business. The brand strength that Pringles has fits well with Kellogg’s strengths in brand building and innovation. Kellogg’s believes the transition will be smooth due to the fact that Procter & Gamble have similar a culture and similar values. The transition is said to be complete by the end of this summer. http://www.kelloggs.com/en_US/news-2.html
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