Kellogg Co., Battle Creek, Mich., said it's selling the Lender's bagel business to Aurora Foods, Columbus, Ohio, for $275 million. The faltering cereal marketer purchased the packaged bagels business for $466 million in 1996, hoping to extend its breakfast offerings with a more portable option. The purchase fits into Aurora's strategy of acquiring and rebuilding undermarketed brands, among them Aunt Jemima, Duncan Hines and Log Cabin. Aurora has pledged to increase marketing support of Lender's, including introducing new products and packaging.
Copyright September 1999, Crain Communications Inc.