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## All Other Areas 

Our other international markets encompass Canada and Australia, two of our largest markets, and Asia. In 2003, this group of markets collectively posted sales growth of nearly 18%, or 4% in local currencies. These markets made strong progress on the Volume to Value metrics in 2003, enhancing their financial performance. 

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In Canada, we experienced growth in both cereal and snacks. Cereal growth was led by new advertising pro- grams on Special K ® and All Bran ® , proven campaigns on Kellogg’s Frosted Flakes ® and Froot Loops ® and new product launches such as Hunny B’s TM , Tony’s Cinnamon Frosted Flakes TM and a Scooby Doo -themed cereal. 

The healthy snacks business in Canada was driven by Special K TM bars and the introduction of new products, such as Rice Krispies Squares ® Bars with Cadbury ® Chocolate and Nutri-Grain Mini Granola Bites TM . 

In Australia, cereal sales were aided by favorable price/mix, and by the launch of Special K ® Peach & Apricot and a Simpsons ® -themed cereal. Brand-building activities included a successful on-pack CD promotion on Nutri-Grain ® cereal and an effective advertising cam- paign behind our Sultana Bran TM brand. Our snacks business in Australia continued to post exceptional growth, as we extend our portfolio and our distribution. 

Asia also posted solid growth. In Japan, growth was driven by All-Bran ® , behind an effective advertising campaign, and by a new Disney cereal. In Korea, a Lion King ® on-pack CD and the launch of a new Almond Flake cereal flavor led to good growth. 

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Each of these regions and markets will focus on Volume to Value in 2004. We should continue to build momen- tum in our innovation pipeline and our consumer promo- tions, allowing us to grow our cereal sales in the highly competitive Canadian and Australian markets, with faster growth coming from Asia. Our wholesome snacks busi- nesses in Australia and Canada should once again expand, taking advantage of favorable trends in snacking. 

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Earning Our Stripes 

