Battle Creek, Michigan
December 9, 2005
Responding to the growing demand
for foods without trans fatty acids,
Kellogg Company
(NYSE:
K) today announced a major investment in new technologies
that will make it possible to reduce or eliminate trans fatty
acids while also minimizing the saturated fat content of its
products.
As a major part of this
investment, Kellogg will become one of the first food
manufacturers to use low linolenic soybean oil through an
agreement with Monsanto.
Kellogg will use Monsanto's Vistive(R) low-lin soybean oil to
reduce or eliminate trans fatty acids in a number of its
products.
"Kellogg has a longstanding
history of innovation, which is why we are among the first to
invest in low-lin oils to reduce or eliminate trans fatty acids
in our products," David Mackay, president and chief operating
officer.
"Our goal is to make use of the
most innovative ingredients possible and to encourage the
accelerated production and adoption of low-lin oils so the
public will benefit from this breakthrough technology. This is
one of many steps we are taking to continue to provide healthy
alternatives to consumers."
Kellogg anticipates introducing
some products reformulated with Vistive(R) oil in early 2006.
However, MacKay noted there currently is a significant shortage
of low-lin soybean oil. In order to meet future demand,
soybean
farms will need to transform their production methods, and food
manufacturers will need to signal their intention to use low-lin
soybean varieties.
According to the United Soybean
Board, in 2005, farmers planted about 200,000 acres of low
linolenic soybean varieties. Nearly a million acres are expected
to be planted in 2006 to meet the anticipated demand for low-lin
soybean oil and significantly more will be necessary to replace
the more than 5 billion pounds of partially hydrogenated soybean
oil used annually in the United States. Currently, soybean oil
accounts for 80 percent -- or 17.5 billion pounds -- of the oil
consumed in the U.S. and is the most widely used oil in food
production.
To help address the shortage,
Kellogg will be working with the Bunge/DuPont Biotech Alliance,
another producer of low linolenic soybeans, to increase
production of Nutrium(R), its low-lin soybean oil, for use in
2007 in addition to increased acreage of the Monsanto
Visitive(R) soybean varieties. Kellogg is also taking a
leadership role within the food industry by calling for better
cooperation among farmers, seed producers, and food
manufacturers
to create a reliable supply and efficient delivery of soybean
varieties with a low linolenic acid profile. These efforts will
focus on enlisting more farmers to grow low-lin soybeans under
contract with participating soybean processors,
who will crush the grain, refine the oil and market the oil to
food companies. It will also require an investment by other food
manufacturers to create the market demand necessary for ramping
up larger volumes of low linolenic soybean varieties.
"Kellogg is providing the
leadership needed to expedite the commercialization of low-lin
soybean varieties," said John Becherer, CEO the soybean
industry's QUALISOY(TM) initiative and the United Soybean Board.
"We have long recognized the value of bringing healthier
soybeans to the marketplace. With Kellogg's decision to
begin reformulating some of its products with low-lin soybean
oil, we now have the impetus for expediting production of
soybean enhancements that will better meet the needs of the food
industry and ultimately the consumer."
With 2004 sales of nearly $10
billion, Kellogg Company is the world's leading producer of
cereal and a leading producer of convenience foods, including
cookies, crackers, toaster pastries, cereal bars, frozen
waffles, and meat alternatives. The Company's brands
include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It,
Nutri-Grain, Rice Krispies, Murray, Austin, Morningstar Farms,
Famous Amos, Carr's, Plantation, Ready Crust, and Kashi. Kellogg
products are manufactured in 17 countries and marketed in more
than 180 countries around the world. |