Kellogg Supplier Diversity Spending Surpasses $350 Million Mark

Date:08 March 2012

Type:Business News

Source:Food Ingredients First

Sector:Cereals

The Kellogg Company's supplier diversity program supports more than 200 companies owned by women, people of color and disabled veterans. In 2011, Kellogg spent $353 million on goods and services from diverse, first-tier suppliers, who supply goods and services directly to Kellogg and its co-manufacturers.

Mar 8 2012 --- Kellogg Company values its strong partnerships with diverse suppliers – sparking its 13th consecutive year of growth in its U.S. supplier diversity program, which began more than two decades ago. In the last 10 years alone, the program has experienced a nearly 6-fold increase in spending, surpassing the $350 million milestone for the first time in 2011.

"Our company is strengthened by a workforce that's reflective of the diverse consumers we serve," said John Bryant, Kellogg Company president and chief executive officer. "Similarly, we are also strengthened by working with a diverse supplier base that can help us better understand and address our consumers' needs. And we know when our suppliers succeed, we succeed."

"Our supplier diversity program is about more than simply boosting spend or the numbers of women- or minority-owned companies in our supply chain," said Cathy Kutch, director of supplier diversity, Kellogg Company. "It's about partnering with companies to foster mutual success and sustainable growth."

For instance, Kellogg worked closely with the proprietor of Coalescence, LLC, to help the company grow. Today, Coalescence sells more than $21 million worth of custom flavorings each year to Kellogg alone, and also supplies other major food companies and restaurant chains.

And Kellogg has been recognized for this commitment. Last year, the company was honored with the CEO Leadership Circle of Excellence Award from the Minority Business Development Agency (MBDA).

"The company's supplier diversity program is unequivocally best in class, and it's evident that diversity initiatives across the company are supported from the top down," said Eric Dobyne, Chicago Regional Director, U.S. Department of Commerce, MBDA. "Kellogg goes above and beyond the status quo to fully incorporate innovation and diversity into its global supply chain."

Concludes Bryant, "Our supplier diversity program works to strengthen our communities as well, providing business opportunities for companies owned by members of minority groups and women. Our partnership with Coalescence is just one example of that."

Looking ahead, the company recently added businesses owned by gays and lesbians to its diverse supplier database and will be tracking spending with this group in the future.

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