Wisynco is New Kellogg's Distributor

Susan Gordon, Business Reporter

Starting may, the Wisynco Group Limited will take over distributorship of the entire range of Kellogg's products in Jamaica under an exclusive deal with the American cereal maker, adding yet another international brand to its ballooning distribution business.

The Michigan-based company, pulling in US$11 billion in sales for 2006, recently ended its 85-year relationship with Chas E. Ramsom Limited, former distributors of the Kellogg's cereal brand in Jamaica.

"We are just about to start - in about one month's time," Wysinco Group managing director, William Mahfood, confirmed to Wednesday Business in a brief interview. "A few months ago they felt Wisynco could do a better job with their cereal and they decided to terminate their over 85-year relationship with Ramsom who had been distributing for them."

Convenience food

Kellogg Company is the leading manufacturer of cereal in the world and is also a chief producer of convenience foods, including cereal, fruit snacks and snack bars, crackers, cookies, pastries, frozen waffles and veggie foods.

The American company has about 15 per cent of Jamaica's cereal market.

Wisynco, which already holds distribution rights for Kellogg's brand crackers and snacks in the local market, aims to grow the Kellogg's brand by 50 per cent over the first 24-month period of the dealership.

Kellogg's cereal brands include Rice Krispies, Special Ks, Fruit Loops, Frosted Flakes, Eggo, Cocoa Krispies, Apple Jacks and Pop-Tarts. New products in its range include Dream Works Shark Cereal, Smart Start Healthy Heart, and Cocoa Krispies Choconilla.

Mahfood said the new distributorship adds to its marketing of the Keebler brand, also owned by Kellogg.

Double the numbers

"We were doing a number of the cookies from the Keebler crackers brand, which Kellogg's bought," said Mahfood, referring to the acquisition of snack leader Keebler Foods Company in 2001. "Last year, they asked us to take over the snack division and they were happy with the business and the job by Wisynco."

Mahfood said he estimates the dollar value of the local cereal market at about $750 million per annum. Kellogg's 15 per cent would amount to an annual $112.5 million, which Wysinco hopes to double in two years.

"Our objective is to try and get a 20 per cent in the first year and a 30 per cent by the second year," said Mahfood.

Founded in 1906 in Battle Greek Michigan, Kellogg's has products manufactured in 17 countries and marketed in more than 180 countries. The company also owns Eggo, Cheez-It, Nutri-Grain, Murray, Austin, Morningstar Farms, Famous Amos, Carr's, Plantation and Ready Crust brands.

(Gleaner)