A Look Into the History of Kellogg’s
The advent of the 20th century saw Americans transition from traditional, heavy breakfasts such as eggs and sausages to lighter and more convenient meals, namely cornflakes.
This change in diet was due to the rapidly urbanizing industrial workplace that required men and women to adjust their schedules to accommodate the fast-paced work environment.
Americans found cornflakes a more convenient breakfast option as this product required less preparation time and was as filling as other traditional morning meals.
Little did they know, this product was accidentally invented by two brothers, one being the founder of the Battle Creek Toasted Corn Flake Company (later renamed The Kellogg’s Company.)
The History of Kellogg’s
Will Keith Kellogg founded the Kellogg’s Company as Battle Creek Toasted Corn Flake Company in 1906, after a fallout with his brother, Dr. John Harvey Kellogg.
The two had been in the cornflakes business for more than five years through another company they had founded in 1900 called Sanitas Food Company. W. K. Kellogg worked under his big brother John at Sanitas Food Company.
He also, at the time, worked as a bookkeeper in Adventist Battle Creek Sanitarium, a medical spa, and resort run by his brother.
Dr. John Kellogg took over the Adventist Battle Creek Sanitarium in 1876.
As a vegetarian and wellness guru, he, alongside Will Kellogg, worked to develop a grain flake cereal that could serve as breakfast for patients and guests in the sanitarium.
After many unsuccessful trials, the two brothers accidentally invented a wheat flake in 1898, which they named granose.
Guest and patients at Battle Creek Sanitarium loved the newly invented granose, so much so that W. K. Kellogg wanted to expand their operation base to customers outside the sanitarium.
Dr. John Kellogg, however, didn’t share the same vision. He was not interested in the business aspect of their invention but rather the nutritional side of it. Dr. John Kellogg forbade Will Kellogg from selling the cereal externally, and as a result, the two brothers parted ways.
Founders
In 1906, Will Kellogg purchased rights to the cereal flake recipe from his brother and struck out to form his own establishment.
He named it Battle Creek Toasted Corn Flake Company. Will wanted to target the public by manufacturing cornflakes in mass quantities and using a significant portion of the revenue for advertising.
By 1907, the company was distributing 2,900 cases daily and making a dollar profit per case. Two years later, it was selling 120,000 boxes per day.
Company Setbacks
Kellogg’s did not suffer any major setbacks over its growth phase – only slight hitches that the company later overcame. The first challenge came in the 1910s when the two brothers sued each other over the name “Kellogg’s.”
In 1909, Will Kellogg renamed his company Kellogg Toasted Corn Flake Company. Dr. John Kellogg, seeing the success of his brother’s company, also renamed Sanitas Food Company to The Kellogg Food Company.
He also used a slogan and packaging similar to the ones used by Kellogg’s Toasted Corn Flake Company.
The resulting lawsuit lasted almost a decade and reached the Michigan State Supreme Court. It eventually ended in 1920, with the court ruling in Will’s favor.
Will Kellogg later renamed the company to its current name, Kellogg Company, in 1922. There are no accounts of the legal battle affecting operations in the company.
Kellogg’s also suffered a minor setback in 1907 when a raging fire destroyed the company’s main factory. By this time, the demand for cornflakes had outstripped supply.
Will Kellogg quickly turned to resolve the issue by drafting plans for a new plant. He purchased land at a strategic location and built a new fireproof plant that grew to handle 4,200 cases per day. The new factory was ready for operations in six months.
Company Successes
By the time W. K. Kellogg founded his company, other entrepreneurs had already recognized the new business opportunity under their noses.
People loved the convenience of eating cornflakes in the morning. All you had to do was open the box, pour the cereal into a bowl, douse them with milk, and enjoy.
Eating breakfast had never been easier. This led to a series of other companies adding cornflakes to their product category, with the most successful ones being C. W. Post (later rebranded as Post) and General Mills.
Kellogg’s, however, boasted a larger market share thanks to its crafty and expensive advertising campaigns. Will Kellogg believed in the power of ads to get a company’s brand and products known.
A significant portion of his company’s working capital went towards marketing. Advertising is what enabled Kellogg’s to sell its one-millionth case in 1909. It allowed the company to expand into five sales regions: North America, Europe, Asia, Latin America, and Australia.
Business Strategies
Kellogg Company expanded through a series of product developments and acquisitions. In 1915, the company introduced Bran Flakes and then All-Bran in 1916.
Kellogg’s also added Rice Krispies to its product catalog in 1928 and a series of other new items in the 1960s and 1970s, including Raisin Squares, Crispix, and Nutri-Grain Biscuits.
By 1997, Kellogg’s owned twelve of the top fifteen cereal brands. Fast forward to 2022, the company produces more than 40 branded cereal products, with some sold exclusively in specific countries and regions.
In 1969, Kellogg’s began to diversify its product catalog. The company achieved this by acquiring various small food companies.
For example, Salada Foods in 1969, Fearn International in 1970, Mr. Smith’s Pie Company in 1976, and Pure Packed Foods in 1977. Kellogg’s also purchased Keebler Foods for $3.87 billion in 2001, acquiring many other products, including cookies, granola bars, and crackers.
Marketing Strategies
Kellogg’s has, for a long time, relied on advertising and promotions to create demand for its products. Will Kellogg always went big on advertising.
His first major campaign was an ad in the Ladies Home Journal that cost his company 30% of its working capital. Will Kellogg ran this campaign in his first year in business. It enabled sales to shoot from 33 to 2,900 cases per day.
Kellogg’s is famous for running crafty and creative campaigns. One encouraged shoppers to “wink at their grocer and see what they’d get.” Customers who did would get a free Kellogg’s sample.
Kellogg’s also devised another popular campaign that aired as the slogan, “Kellogg’s puts more into your day.” This tagline was recited on Sunday morning TV shows from 1969 to 1970.
As for their marketing strategy, Kellogg’s products primarily targeted children. This was evident in the company’s branding elements, such as cartoon mascots and other animated characters.
However, in 1983, the company decided to steer its products and marketing towards adults aged between 25 and 49.
By targeting grownups, Kellogg’s gained a competitive edge over its biggest competitors, General Mills, and Post, which still concentrated their marketing efforts toward kids.
Lessons
Here are a few lessons we can pick up from Kellogg’s story:
Believe In Your Ideas
Despite his brother’s prohibition, Will Kellogg remained stubborn on his idea to market to customers outside Adventist Battle Creek Sanitarium.
He believed that many other people would enjoy cornflakes just as much as the patients and guests in the sanitarium.
Will Kellogg struck out on his own and eventually found millions, if not billions, of customers. Don’t let the criticism or ridicule from others prevent you from pursuing your ideas and goals.
Promote Your Brand and Products
One thing that enabled Kellogg’s to stay ahead of its competitors was advertising. Will Kellogg was willing to spend a fortune on advertising, and his efforts were not in vain.
Don’t be afraid to spend a buck or more to promote your products. Your marketing efforts will eventually pay off.
However, before you market your business, first understand your target customers and create campaigns and branding elements geared to attract them.
Find Your Niche
William E. LaMothe, the former chairman of Kellogg’s, realized that the cornflakes industry was saturated and that most companies directed their marketing efforts toward children.
He changed his marketing strategy to target adults, particularly baby boomers. This shift enabled Kellogg’s to stay ahead of its competitors, most of whom still focused on children-oriented products.
Strive to differentiate your business from competitors by utilizing opportunities that aren’t immediately obvious.
Facts About Kellogg’s
Let’s look at a few interesting facts about Kellogg’s.
- The Apollo 11 astronauts carried Kellogg’s cereals for breakfast to the moon. Unlike the astronauts, the Kellogg cereals did return to Earth.
- Kellogg’s was the first company to incorporate complementary products into their cereals. The company once hosted a promotion where it gave away children’s books and pin-back buttons in their cereal boxes.
- Kellogg’s logo was handwritten by W. K. Kellogg, the company’s founder. It hasn’t changed since.
- Kellogg’s was the first company to advertise in New York Times Square.
- In 2012, Kellogg’s was named the world’s second-largest snack food company after PepsiCo.
Kellogg’s Company Timeline
Kellogg’s Company Timeline1906
W. K Kellogg launches The Kellogg Company as Battle Creek Toasted Corn Flake Company.
1907
The company gets renamed Toasted Corn Flake Company
1909
The company is renamed again to Kellogg Toasted Corn Flake Company.
1915
Kellogg’s adds Bran Flakes to its products catalog.
1922
Kellogg’s changes its name to Kellogg Company.
1928
The company introduces Kellogg’s Rice Krispies.
The 1940s
Kellogg’s produces K-rations of the company’s cereals to support United States troops.
1969
Kellogg’s acquires Salada Foods.
1970
Kellogg’s acquires Fearn International.
1976
Kellogg’s acquires Mrs. Smith’s Pie Company.
1977
Kellogg’s acquires Pure Packed Foods.
2001
Kellogg’s acquires Keebler Foods.
2012
Kellogg’s gets named the world’s second-largest snack food company, after PepsiCo. Kellogg’s also acquires the brand Pringles from Procter & Gamble.
2017
Kellogg’s acquires Rxbar for $654 million.
2018
Kellogg’s ceases operations in Venezuela due to the country’s economic crisis.
2020