US Company-based Kelloggs, a world leader in cereal breakfast, says it intends to invest $420 million into Nigerian company Tolaram Africa Foods, its distribution partner in Africa
The fresh capital injection is to enable Kelloggs to strengthen its presence on the continent and compensate for the drop in demand for cereals on its home market, the company said a media release on May 3.
Nigeria’s Tolaram Africa Foods, which also produces noodles and operates a distribution channel, has a strategic access to several other countries in Africa such as Ghana, DR Congo, Côte d’Ivoire and Ethiopia.
The investment by Kelloggs is therefore, expected to help strengthen Tolaram’s existing distribution channels, while exploring new markets on the continent.
Kelloggs is the world second-largest supplier of biscuits, crackers, and salted snacks, and operates popular brands such as Corn Flakes, Keebler, Pop-Tarts, Special K, and Pringles.
In the first quarter of this year alone, the company achieved a turnover of $3.4 billion and a $444 million net income.