October 06, 1999 - Kellogg to buy Worthington Foods, Veggie "Meats" Marketer

by Lachelle Lewis

Can Tony the Tiger make a meal out of meat analogs?

That's the question being asked as Battle Creek, Mich.-based Kellogg Co., best known as the manufacturer of Frosted Flakes cereal, agreed to buy Worthington Foods Inc., the world's largest company devoted solely to manufacturing and marketing meatless versions of such traditional breakfast staples as link sausage. The $307 million deal offers about $24 for each of Worthington's 12.8 million shares and should be finalized by the end of this year, according to a Kellogg's news release.

'This acquisition creates a new high-growth earnings stream for Kellogg,' said Carlo M. Gutierrez, Kellogg's president and CEO.

According to Gutierrez, Kellogg plans to invest in new products, marketing and sales in the meatless foods category to strengthen its leadership position. 'We are pleased to join a company with Kellogg's reputation and resources. Becoming a part of Kellogg will greatly accelerate our growth potential,' said Dale E. Twomley, Worthington president and CEO.

Worthington, Ohio-based Worthington Foods specializes in meat analogs, including veggie burgers, meatless sausage, chicken and hot dog products. Its brands include Morningstar Farms, Natural Touch,Worthington and Loma Linda.

This article reprinted with permission from Meat Marketing & Technology.

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