News Summary: Kellogg looks to expand in China
THE DEAL: Kellogg Co. says it formed a joint venture to expand the distribution of its cereals and snacks in China.
THE BACKGROUND: Kellogg already sells several cereal brands and Pringles in the country. But the company is hoping it can expand its presence and get the Chinese to eat more cereal, which is not a common breakfast food in the country.
THE CHALLENGE: China's past scandals with tainted milk remain a hurdle for cereal makers. Milk in China is also watered down and doesn't taste as good, notes Paul French, chief China strategist for Mintel, a research firm.