kellogg north america leadership team
TRANSCRIPT
Kellogg Company November 20, 2015
1
Kellogg North America Leadership Team
Kris CharlesVice President,
Global Communications& Philanthropy
Margaret BathSenior Vice President,Research, Quality &
Technology
Paul NormanPresident,
North America
Brian RiceSenior Vice President,
Kellogg CompanyChief Information Officer
Marty CarrollSenior Vice President,
North America Supply Chain
Lyn FrantzVice President,
KNA Human Resources
Carol StewartPresident,
Canada
Andrew LoucksPresident,
U.S. Frozen Foods
Larry BruckVice President,
Global Marketing
David DenholmChief Executive Officer,
Kashi
Craig BahnerPresident,
U.S. Morning Foods
Wendy DavidsonPresident,
U.S. Specialty Channels
Ozan DokmeciogluChief Financial Officer,Kellogg North America
Deanie ElsnerPresident,U.S. Snacks
Scott SalmonChief Customer Officer
KUSA Sales
North America | 2Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
2
Kellogg North America
SnacksMorning Foods
Specialty
FrozenCanada
Kashi
Category Share Position(a)
RTECToaster PastriesCrackersCookiesWholesome SnacksFrozen WafflesFrozen Veggie
#1#1#2#2#2#1#1
(a) A.C. Nielsen, xAOC, YTD 2015 through 10/3/15
North America | 3Kellogg Company | November 20, 2015
A diverse portfolio / strong category-leading positions
Evolving Consumer and Customer Landscape
Taste Is King Health, Wellness, and Transparency
Food Anytime / Anywhere
Millennials – Variety Seekers
New Science of Marketing
Blended Retail Reality
North America | 4Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
3
Opportunities to Grow
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
Special K $ Sales % Chg vs YA
TTL Special K Red Berries
Red Berries +7.3% in Q3
Source: AC Nielsen, consumption through week ending 10/3/15
North America | 5Kellogg Company | November 20, 2015
Taste is King Health, Wellness, and Transparency
Opportunities to Grow
Froot Loops 195 index(b)
versus category in Millennial households with kids
% Single Serve / Snacks Sales(a)
(a) A.C. Nielsen, xAOC+Convenience, year-to-date through 10/3/2015(b) Nielsen Homescan, 52 weeks ending 9/5/15
0%
5%
10%
15%
20%
25%
Kellogg Competitor A Competitor B
North America | 6Kellogg Company | November 20, 2015
Millenials – Variety SeekersFood Anytime / Anywhere
Kellogg Company November 20, 2015
4
New Ways to Engage and Buy
2012 2016E
76%
9%
48% 46%
U.S. Snacks Media % Split TV vs. Digital(b)
Accelerating Sales and Share Growth in High Growth Channels(a)
(a) Nielsen YTD 10/14/15, (Dollar, Drug, Club, Convenience)(b) Internal data and estimate
Category Kellogg
147 index TVDigital
North America | 7Kellogg Company | November 20, 2015
Blended Retail Reality New Science of Marketing
Brands for today’s consumer
Investment sufficiency
Through better execution, baseline trends are improving across our largest brands (RTEC Core 6, Cheez-It, Pringles, Kashi)
Get back to…
Kellogg North America
… Profitable Growth
North America | 8Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
5
Kellogg North America – 2020 Growth Plan
Enable the Growth
Grow Sales and Share | OP Margin Expansion | Grow Free Cash Flow
Transform SnacksWin in Breakfast Build a Next Generation Natural Business
Win Where The Shopper Shops
Our VisionEnrich and delight the world
through foods and brands that matter
Our PurposeNourishing families so they can flourish and thrive
Fuel for Growth
Culture for Growth/High-Performing Team
Accelerate Frozen
North America | 9Kellogg Company | November 20, 2015
Win in Breakfast
Core brands firing on all cylinders
Invest in our foods
Drive fun and engagement
Accelerate out-of-breakfast consumption
North America | 10Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
6
Transform Snacks
Invest to accelerate growth behind our advantaged brands
Unlock “On-the-Go” potential
Expand Channels
North America | 11Kellogg Company | November 20, 2015
Accelerate Frozen
Continue to drive Eggo
Differentiate and scale Savory
Transform “Veggie”
North America | 12Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
7
Build a Next Generation Natural Business
Return Kashi to growth in 2016
Lead in plant-based nutrition
Win with “food forward” consumers
North America | 13Kellogg Company | November 20, 2015
Growth Enablers
Brand Engagement for Tomorrow’s Consumer
Agile / ReliableSupply Chain
Talent Management
Preferred Foods and Packaging
North America | 14Kellogg Company | November 20, 2015
Preferred Foods and Packaging
Brand Engagement for Tomorrow’s
Consumer
Agile / Reliable Supply Chain Talent Management
Kellogg Company November 20, 2015
8
Fuel for “Profitable” Growth
Manage for Cash
Project K
Ongoing Productivity
North America | 15Kellogg Company | November 20, 2015
Reinvestment Opportunities (ZBB)
Innovation / Renovation acceleration
Brand activation
On-the-go formats
Channel activation
Capabilities
North America | 16Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
9
North America – Summary
Strong team
Brands for today’s consumer
Investment sufficiency
Improving baseline momentum
Committed to profitable growth — Sales growth— Operating-margin expansion— Strong cash flow
North America | 17Kellogg Company | November 20, 2015