Our unwavering focus on the long-term health of our business includes investing in future growth by expanding our business platform where it makes sense. In recent years, we have acquired several companies that have added to our stable of strong brands and operational assets, or built our presence in high-growth regions. We integrate these acquired companies into our portfolio and drive their value by applying our brand-building and innovation expertise.

In 2008, we made several acquisitions that strengthened our global growth platform. We acquired United Bakers, one of Russia’s largest makers of cookies, crackers and cereals, gaining distribution and manufacturing capabilities throughout the country.

We also purchased Navigable Foods, an established biscuit manufacturer in north and northeast China. This acquisition gave Kellogg two new manufacturing facilities and a distribution network, strengthening our presence in a market within a $3.3 trillion economy.

In Australia, we purchased Specialty Cereals Pty. Limited, a natural foods company with a strong performance record. We also continued to develop our joint venture with Ülker in Turkey. Since entering this agreement, we have steadily increased our market share from 2 percent in 2006 to 25 percent at the end of 2008. In 2008, we set the stage to take this business to the next level by beginning to manufacture products locally.

In the U.S., we made a series of small acquisitions that offer exciting potential for the future. We purchased Bear Naked, Inc. and its granolas and trail mixes, positioning us to expand our strength in natural foods to a younger demographic. We acquired the assets of IndyBake Products LLC and Brownie Products Co., adding two snacks manufacturing facilities to our network. We purchased the trademarks and recipes of Mother’s Cake & Cookie Co., a regional brand with a loyal consumer following that extends our reach in the western U.S. We also continued to leverage our popular Kashi brand, extending its all-natural, seven-grain foods into new categories, including crispy thin crust pizza.