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NEW YORK (AP) — Kellogg is hoping to turn cereal into a breakfast staple in China

Posted on 25 September 2012.

NEW YORK (AP) — Kellogg is hoping to turn cereal into a breakfast staple in China

The maker of Frosted Flakes, Pop-Tarts and Eggo waffles says that it formed a joint venture to sell its cereals and snacks in the country as early as next year. The breakfast giant says the deal will tap the infrastructure and local expertise of Wilmar International, a Singapore-based agribusiness, to expand its presence in China.

The Battle Creek, Michigan-based company also plans to sell its Pringles chips through the joint venture. Kellogg acquired Pringles from Procter & Gamble Co. earlier this year, in a deal intended to expand its footprint overseas.

Kellogg Co. currently gets most of its revenue from North America, where growth in the packaged food industry has been relatively weak. But like other companies, Kellogg is increasingly casting its sights on developing markets such as China and India, where the appetite for convenience foods is growing more quickly.

Kellogg notes that China is expected to be the largest food and beverage market within the next five years, as the ranks of middle-class consumers continue to multiply in large cities. As for cereal, which is not traditionally eaten in China, the company says consumption is rising as milk becomes a more common part of the diet.

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