Kellogg expanding food and nutrition research institute
December 12, 2007
by FoodBusinessNews.net Staff
BATTLE CREEK, MICH. — The Kellogg Co. is expanding the W.K. Kellogg Institute for Food and Nutrition Research with a 157,000-square-foot pilot plant and office space addition.
The goal of the expansion is to enhance the existing global center for research and innovation and help meet business needs and achieve continued growth. Specifically, the company said it will help fuel top-line growth through additional pilot plant space, enhanced process scalability and additional space.
The expansion will cost $40 million along with a $14 million investment in pilot plant equipment over the next 10 years. These costs already have been reported in the company’s capital expenditure guidance.
"Innovation is a core component of Kellogg’s business strategy, and we have a proven track record of delivering results from our innovations," said David Mackay, president and chief executive officer of Kellogg Co. "In 2006, 17% of net sales, or almost $1.9 billion dollars, were delivered through innovations launched in the last three years. The expansion of the W.K.K.I. facility ensures we can continue to drive strong innovation and supports our goal of delivering sustainable growth for our shareholders."
Currently, the research facility includes a 160,000-square-foot pilot plant and 80,000 square feet of office space. With the expansion, 87,000 square feet of space will be added to the pilot plant along with 70,000 square feet of office space — taking the entire facility up to almost 400,000 square feet.
Kellogg net sales have doubled from $6 billion to almost $12 billion since the W.K.K.I. facility opened in 1997, and net sales from innovation have also almost doubled as well. Process capabilities also have been added as the company has expanded into new categories.
If state and local approvals are given, construction should begin in the second quarter of 2008 with the expansion to be operational in the third quarter of 2009.