Innovation is fundamental to our Sustainable Growth model. The successful introduction of new products helps reinforce brand awareness, drive sales, and strengthen both our product and price/mix. We consistently develop products that are differentiated in the marketplace and respond to the changing tastes and lifestyle needs of consumers around the globe. Over the years, we’ve helped promote shape management through Special K products, heart health through Smart Start, Optivita, and Kashi Heart to Heart, and digestive health through All-Bran. We’ve met consumer demand for snack products through our Cheez-It and Townhouse brands, developed a selection of seven-grain natural foods under our Kashi brand, and introduced a wide assortment of healthy snack bars for consumers on-the-go. In 2008, we announced the expansion of our primary research and development engine, the W.K. Kellogg Institute for Food and Nutrition Research. We also drew on our innovation teams around the world to introduce 151 new products or new versions of existing products. We continued to demonstrate that we are developing products that consumers want by generating about $2 billion, or 15 percent of our total sales, from products we have launched during the past three years.

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