• Kellanova is expanding its solar and back-up power capacity to mitigate the impact of load shedding. 
• Apart from this, however, there are no other investment plans on the table in SA at the moment. 
• The company has had a presence in SA for 100 years. 
• For more financial news, go to the News24 Business front page.

Kellanova – the cereal giant formerly known as Kellogg Company – says it is investing significantly in expanding its solar and back-up generation capacity as it attempts to soften the blow from load shedding.

No other major investments are on the cards in SA at present.

The owner of brands such as Kellogg’s Cornflakes, All Bran Flakes and Pringles didn’t rule out expansion in the future – if the country’s energy issues were to improve. But for now, the company, which has had a presence in South Africa for more than 100 years, has to ensure it can manufacture food safely, even during power outages.

This applies to both food safety standards and the safety of the employees working on the production line.

Zandile Mposelwa, Corporate Affairs Director at Kellanova, said she could not disclose how much was invested in solar panels and other back-up generation power solutions. But about 10% of its energy requirements are being met by solar panels, and the company aims to double this by the end of next year. It also makes extensive use of diesel generators.

Mposelwa was speaking weeks after Kellogg formally underwent a name change after deciding to split into two separate companies. One of these is its North American cereal business WK Kellogg Co, and the other is Kellanova, which will house its cereal and snack businesses in markets such as Latin America, the rest of Africa, SA and the Middle East. Kellanova will still be headquartered in Battle Creek, Michigan, while all its products will keep the Kellogg’s brand.

She said the company, which has had a presence in SA for 100 years, had “massive cookers” that turned out products such as its cornflakes, for example.

The company employs just under 300 people in SA, with about 80% of these workers based at its operations centre in Springs. Its headquarters are in Woodmead, Johannesburg.

Most of the available Kellogg’s products are manufactured in Springs, with only its Pringles products, Coco Pop Crunchers and Rice Krispies imported into SA.

Mposelwa was hopeful that the work being led by the government (and supported by the private sector) to improve power generation would ultimately bear fruit and “get us to a point where conversations around expansion” are feasible.

Banting fever vs. “goodness of grains”

Mposelwa said the rise of gluten-free and low-carb diets, which have gained traction around the world in recent years, had not had any significant effect on their cereal brands, which have remained popular with consumers.

Cereals “continue to grow because consumers still want the goodness of grains”, Mposelwa said.

But the group also continues to monitor new trends and did not rule out the possibility of future gluten-free products in SA.

However, anything new would be backed up by research and other consumer insights, she added.