Page 10 - Global EM Granola Learning Book - Draft VS 22

1. Granola in Global Emerging Markets:

1.2 Global Size and Growth

Global Granola

KEY TAKE-OUT

Global Granola growing Global Granola Sales RSV US$ 000' m
at +8% with EM granola 2015 2016 YOY% Segment %

+14% and Kellogg EM
granola growth of +28% Total Global Granola 3,232 3,494 108% 100
Core 4 Markets 1,153 1,213 105% 35

Developing markets 1,064 1,119 105% 32
Sequential improvements
in Granola GP Margins to Total Emerging Markets 1,015 1,162 114% 33
35% driven by reduction
in COGS as volumes Source: Euromonitor 2017
increase
Kellogg Emerging Markets Granola

Kellogg Granola
currently at a 28% • Total 2016 NSV of US$ 95 m (Asia 7 – 60m in past 4 years)
premium to RTEC and
projected to reach • 28% CAGR
US$ 200 m by 2020 • NSV per kg US$ 6.50
• NSV 32% premium to average RTEC in EM
• Sequential improvement in COGs
Additional Information
• Sequential improvement in GP% 28 to 35%

Top 8 Kellogg EM Granola
Markets are: Rate / Kilo 2014 2015
1. Japan
2. India NSV / Kilo 6.24 6.52
3. Korea COGS / Kilo 4.28 4.28
4. Middle East
5. SEA GP / Kilo 1.96 2.23

6. Columbia
7. Mexico A&P / Kilo 0.70 0.87
8. Brazil
Brand Contr / Kilo 1.26 1.36
Source: Internal Kellogg NSV
Source: Internal Kellogg Consolidation