EUROPE – Kellogg Europe has invested US$168.5 million in expanding manufacturing capacity of its snack brand Pringles to meet rising demand for snacks in Europe.
Of the total investment, US$132 million was used to install a new production line at Kellogg Europe’s Kutno, Poland plant that has already been opened and is fully operational.
According to Kellogg, the new line is sustainably designed, reducing requirement for heating and other infrastructure in the factory. It also highly efficient, minimizing chances of food waste.
Kellogg Europe said that the remaining US$36 million go to renovating its factory in Mechelen, Belgium to enable it to keep up with demand as well as making production more sustainable.
Work on the upgrades will begin this year, according to a statement from the company.
The investment in snack manufacturing capacity is timely as the European Snack Products Market which was valued at US$180 billion in 2019 is estimated to be growing at a CAGR of 6%, to reach USD 220 billion by 2025, according to Market Data Forecast.
Mordor Intelligence further notes that the pandemic fueled growth of the snack market in 2020 as consumers, forced to stay indoors, made snacking a common habit, mostly among the adult and younger population.
“Over the medium term, snack food will emerge as an alternative to full-fledged meals with the paradigm shift in consumer behaviour patterns,” Mordor Intelligence adds.
“I’m very happy that we can meet the growing demand from Pringles customers and consumers. Our investment in both our Belgian and Polish operations shows our commitment to driving our Pringles brand across the European region,” says Dave Lawlor, president of Kellogg Europe.
“Completing the new, most efficient and sustainable Pringles line yet in our Polish factory ahead of time in the middle of the pandemic is a great achievement.”
Earlier, Kellogg released its first quarter results announcing a 5.1% net sales increase for the first three months ending March 31.
The company a strong performance by its cereals range and Pringles brand, particularly in Europe and the AMEA region led to the impressive growth in sales.
As a result of the strong growth experienced in Q1, the company is upbeat about its prospects for the rest of the year and expects to achieve flat year-on-year growth, up from its previous guidance of a decline of approximately 1%.
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