Kellogg expands in China

Kellogg (K.NYSE) and Wilmar International (F34.SGX) will launch a joint venture as they aim to penetrate the fast-growing Chinese cereal and snack foods market, The Wall Street Journal reported. The venture will be located in Shanghai. Singapore-based Wilmar wholly owns Yihai Kerry Investments which will partner with Kellogg on the venture. Wilmar will provide infrastructure, supply chain, sales and distribution support for the Kellogg’s and Pringles brands. The company is looking to enter the Chinese market at a time when sales have been struggling as the US consumes less of certain products and the European crisis saps demand there. Kellogg Chief Executive John Bryant said the project, “positions our China business for growth and fundamentally changes our game in China.” Within the next five years, China is expected to become the largest food and beverage market in the world.