In 2008, we met or exceeded our goals while continuing
to invest in our brands, our people and our future.
We expect 2009 to be another challenging year. The weak global economic environment will likely persist, increasing the strain on consumers and companies around the world. Yet, this climate is also creating opportunities for our Company. Consumers are responding to the economic pinch by eating more meals at home. They are also becoming more selective in their food purchases, choosing products that they feel good about eating, are priced well, and that they know and trust. Our categories and strong brands place Kellogg in a solid position in this marketplace.
At the same time, we recognize the economy will impact consumers everywhere, creating a degree of uncertainty surrounding the coming year. Our Company must be highly sensitive to this volatile environment, and we must take decisive action to reflect and adapt to the pressure affecting our consumer base. As in the past, we will leverage our strategy and business model to increase our visibility and sharpen our already deep understanding of consumer preferences. With this in mind, our innovation activities for the year ahead will focus on fewer, bigger and better initiatives that anticipate consumer needs. We will continue to invest in advertising and to focus on our strong categories. We will intensify our emphasis on cost savings and cost effectiveness, as well as on productivity and efficiency gains.
As we move forward, we thank you—our shareowners—for your confidence and support. Rest assured that our efforts will help Kellogg Company thrive despite the current economic environment and we remain committed to delivering sustainable and dependable growth into the future.
President and Chief Executive Officer
Chairman of the Board