Corporate & U.S. News

Kellogg Taps Davidson to Head U.S. Snacks

BATTLE CREEK, Mich., May 21 /PRNewswire-FirstCall/ -- Kellogg Company (NYSE: K) today announced that it has named Brad Davidson as its new president of the U.S. Snacks Division, effective June 9, 2003. That post has been vacant since February, and its responsibilities were handled by David Mackay, executive vice president and president, Kellogg USA. Davidson will report directly to Mackay.

A 19-year veteran of Kellogg, Davidson has spent the past three years as executive vice president, chief customer officer of Kellogg's U.S. Morning Foods Division. In that role, he led a major restructuring of Morning Foods' sales force, which contributed to dramatic improvements in business results, category share, customer relationships, and customer service. Previously, he had held numerous senior level sales and marketing positions, both in the U.S. and Canada.

"We conducted a thorough search, interviewing both internal and external candidates," said Carlos Gutierrez, Kellogg's chairman and chief executive officer. "Brad's leadership skills, proven record of accomplishments, and sales expertise make him best suited for this role."

Kellogg's U.S. Snacks Division has been undergoing a transformation from an acquire-and-integrate strategy to one of sustainable, organic growth. Mackay stepped in to directly oversee this strategic shift, which has involved a reorganization of the direct store door distribution (DSD) sales force to better align with our customer base, as well as a rationalization of stock- keeping units and a substantial increase in brand-building and innovation activity. He will spend the next couple of months transitioning Davidson into his new role.

Mackay said, "Brad will be able to step in and have an immediate impact. He is a proven leader with outstanding business instincts and execution skills. He will have an experienced team behind him, including Jim Holton, a 21-year Keebler veteran who runs our DSD sales force. I have full confidence that Brad will lead this business to dependable growth going forward."

Replacing Davidson as senior vice president, chief customer officer of U.S. Morning Foods will be George Ball. Ball has worked for Kellogg Company since 1976, and is currently senior vice president and general manager of Warehouse Club and Retail Specialty Brands. Previously, he held several other leadership positions in Canada and the United Kingdom, and was managing director of Kellogg's Central American business.

Mark Wagner, currently vice president, customer teams, for U.S. Snacks, will be promoted to Ball's position. Wagner has worked in the Company's DSD sales force for the past 20 years, including six years as regional vice president of the Great Lakes region.

Gutierrez commented, "These moves reflect the depth of talent we have in our management team. These are very important roles in our Company, and each of these individuals has proven leadership skills and business expertise. These transitions will be seamless, and they also will allow David Mackay to devote more of his time to running Kellogg USA as a whole."

About Kellogg Company

With 2002 sales of $8.3 billion, Kellogg Company is the world's leading producer of cereal and a leading manufacturer of convenience foods such as cereal bars, frozen waffles, toaster pastries, cookies, and crackers. The Company also produces natural and vegetarian foods. Founded in 1906 and dedicated to providing nutritious, good-tasting foods, Kellogg has manufacturing facilities in 19 countries and sells its products in more than 180 countries. Kellogg brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Nutri-Grain, Cheez-It, Morningstar Farms, and Kashi. For more information, please visit Kellogg's web site at

Forward-Looking Statements Disclosure

This news release contains forward-looking statements related to business performance, growth, strategic shifts, transitions, skills and expertise. Actual performance may differ materially from these statements due to factors related to the Keebler acquisition, including integration problems, failures to achieve synergies, unanticipated liabilities, and the substantial amount of indebtedness incurred to finance the acquisition (which could, among other things, hinder the Company's ability to adjust rapidly, make the Company more vulnerable to a downturn, and place the Company at a competitive disadvantage to less-leveraged companies); competitive conditions and their impact; pricing and promotional spending; the effectiveness of marketing spending and programs; the success of productivity improvements and business transitions; the success of innovation and new product introductions; the recoverability of the carrying amount of goodwill and other intangibles; the availability of and interest rates on short-term financing; commodity prices and labor costs; actual market performance of investments; changes in consumer behavior and preferences; U.S. and foreign economic factors such as interest rates, statutory tax rates, and foreign currency translations or unavailability; legal factors; business disruption or other losses from terrorist acts or political unrest; and other factors.

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