New York (AFP) - US breakfast cereal producer Kellogg said Tuesday it was investing $450 million to build sales of its popular brands in the rapidly growing West Africa market.
Kellogg announced it was joining hands with Tolaram Africa, the Nigeria-based unit of Singapore's Tolaram group, taking a 50 percent share in its distribution arm Multipro, to open markets for its cereals, snacks and other foods.
Tolaram already holds a strong position in Nigeria, Ghana and other parts of the region through its production and distribution of Indomie instant noodles, a popular breakfast item, cooking oil and pasta brands.
"As a region that is experiencing explosive growth, with a population of almost one billion people and an economy that is expected to more than double over the next 10 years, Sub-Saharan Africa provides tremendous opportunity for our company," said John Bryant, Kellogg chairman and chief executive, in a statement.
"Tolaram Africa has built a highly successful consumer products business and today, it is one of the largest food companies in Nigeria," he said.
Kellogg produces well-known breakfast cereals like Special K and Rice Krispies; Cheez-It, Pringles and Keebler snacks, Pop-Tarts, and other brands.
With the $450 million stake in Multipro, Kellogg also gained the right to buy a share of Tolaram Africa Foods, which controls the marketing and manufacturing of Indomie and other brands.
Kellogg said Multipro expects sales of $750 million this year.