Kashi Acquisition Moves Kellogg's Further into Natural Foods Market

Kellogg's Company announced yesterday that it has acquired Kashi (KAH-SHE) Company, a California-based natural cereal and convenience foods company.

Kashi Co., which produces a line of ready to eat products made with a blend of sesame and seven whole grains, will remain based in La Jolla, CA, and operate as part of Kellogg's natural and functional foods division.

"Kashi will enhance our leadership position in the RTEC (ready-to-eat cereal) category and further extend our commitment to build our consumer base in the rapidly growing natural foods marketplace," Kellogg North America President John Cook said in a statement.

In November 1999, Kellogg acquired Worthington Foods, Inc., the nation's leader in the veggie foods category. (See earlier article).

Founded in 1984 by Philip and Gayle Tauber, Kashi Co. grew by more than 100 percent in the fiscal year just ended. Brands include the original Kashi Pilaf, Kashi To Good Friends, Puffed Kashi, Kashi GoLEAN Cereal Slimming System (soy-based cereal, shakes, and bars), Kashi Medley, Honey Puffed Kashi, Kashi Pillows (filled cereal snacks), Kashi go (portable meals), and Kashi Baby & Me.

"With its nearly 100-year legacy of producing great-tasting, grain-based foods, Kellogg Company is an ideal partner for our young company," said Philip Tauber, Kashi Company president. "Working with Kellogg, we will continue to pay homage to our roots in the natural foods channel as we pursue a broader, mainstream consumer market for our products."

Edited by Pam Ahlberg