Pringles-Tortillas

Pringles pops for Kellogg

Acquired by Kellogg from Cincinnati-based Procter & Gamble in late May 2012 for $2.695-billion, Pringles has transformed Kellogg’s global snacks footprint.

With Pringles in the fold, global snack sales at Kellogg grew to $6.5-billion in fiscal 2014, up from $4.8-billion in fiscal 2011, prior to the acquisition of Pringles. The brand has provided a notable boost outside North America. In 2011, about 12% of global snack sales were outside of North America, but in 2014 that percentage was about 25%.

In Russia, Pringles has expanded Kellogg’s snacks presence by more than 50%, and in the Middle East it has doubled the size of its business. To accommodate the growth, Kellogg recently started up a Pringles production line in Kutno, Poland, in the third quarter of fiscal 2014, and Kellogg has plans to add more lines around the world.

“What is great about this brand is that it is truly a global equity, fantastic brand no matter where you go in the world, you will find the exact same product, maybe some local variations on flavors, crab flavour in Russia for example, seaweed in Japan,” says Chris Hood, president of Kellogg Europe.

“So some local flavours variation but the exact same product, the exact same package, the exact same shape and the exact same brand positioning, and this allows us to really create and leverage scale despite being a relatively small player in the snacks category up against a very large player. We’ve got a very, very differentiated proposition.”

As a strong growth engine for Kellogg, Pringles’ performance has prompted the need for new capacity, new innovation and new package and sizing capability. In terms of package and sizing, Hood says Kellogg has invested in formats that not only hit on key price points, but also on formats that allow Pringles to get penetration into new channels such as convenience stores and hotels.

Meanwhile, the roll-out of Pringles Tortilla in the US in 2014 has been hugely successful for the company with more than 50 million units sold, according to the company. Kellogg now is in the midst of a global roll-out of the product, with plans to expand in Europe within the first half of 2015.

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Caption: In March 2014, Kellogg introduced the first-ever Pringles tortilla chip in the US – in three flavours: Original, Nacho Cheese and Southwestern Ranch. While retaining the iconic Pringles shape, Pringles Tortillas are thicker chips because they’re made of corn, not potatoes.