Kellogg Company Plans Two New Distribution Centers

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Researched by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). The world's leading producer of breakfast cereal, Kellogg Company (Battle Creek, Mi) (NYSE: K), plans to construct two new distribution centers in strategic areas of the United States.

The two facilities total over 1.9 million square feet and are expected to cost over $90 million to construct. They will be located in Minooka, Illinois and Atlanta, Georgia.

Site work has commenced on the 1 million square foot building in Illinois that will have multiple shipping and receiving docks, automated inventory control systems and miles of conveyor systems and storage area for breakfast foods. The Georgia facility, which will also distribute breakfast foods, will have 900,000 square feet under roof and is scheduled to begin construction this month. Completion of both projects is scheduled for 2003.

Kellogg is in a multi-year lease deal with two development companies that are responsible for the construction and readying the structures for occupancy. Catellus Development Corporation (Woodridge, Ill.) will handle the Illinois project and Professional Real Estate Services (Newport Beach, Ca) will develop the Georgia facility.

In March of 2001, Kellogg acquired Keebler Foods Company, the number two U.S. producer of cookies and crackers and will more than likely utilize these centrally located facilities to distribute those products as well.

With 2001 projected annual sales of more than $9 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, meat alternatives, pie crusts, and ice cream cones.