Our crackers’ sales grew modestly in 2003. This was led by  Cheez-It ® crackers, the powerful brand we prioritized for brand building and innovation. A new advertising campaign and several new product offerings, such as Parmesan Garlic, Chili Cheese , and Sour Cream & Onion, drove double-digit sales growth for  Cheez-It in 2003. Not surprisingly, the cracker brands that received brand-building and innovation investment showed good growth. In addition to  Cheez-It , we also experienced solid sales gains in our  Club ® and  Toasteds ® brands.  The only soft spot in our U.S. Retail Snacks portfolio in 2003 was our lower-margin cookies segment. Overall cookies consumption declined, amidst a relative lack of brand building and innovation in a category that thrives on this kind of investment. Our decision not to follow competitors’ price promotion activity resulted in less feature and display activity, further dampening our sales of this impulse-driven product. There is no question we need to battle more aggressively in the store and boost the quantity and quality of our cookies’ promotion and innovation. As in crackers, the select cookie brands in which we increased brand building and innovation did show good growth in 2003: The E.L. Fudge ® ,  Sandies ® , and  Murray ® Sugar Free brands each posted retail sales and share gains. The priority now is to spread that investment to more of our key cookie brands in 2004.  Our forecasts for 2004 incorporate only minimal sales growth from our U.S. Retail Snacks business. This is a result of the impact of the discontinued custom manu- facturing account and eliminated SKUs, along with competitors’ price promotion in cookies. However, we anticipate being able to defend our cookies position, while maintaining our cracker sales and continuing to post solid growth in wholesome snacks. We have restructured our sales force and simplified the portfolio, and we have planned a solid calendar of innovation, advertising, and in-store merchandising. Now it’s time for execution, and we believe we have the brands, the distribution system, and the people to grow this busi- ness for many years to come.  Source; Information Resources, Inc., Food, Drug, and Mass Channels,  excluding Wal-Mart; 52 Weeks ending 12/28/03. Categories are  Toaster Pastries, Frozen Waffles, Frozen Veggie Foods. Pop-Tarts ® , the leader in toaster pastries and our largest brand in the U.S., achieved this year’s good results despite new competitive entries and compar- isons with notably strong growth the year before. New products like  Pop-Tarts ® Yogurt Blasts TM  offered deli- cious new alternatives to the traditional  Pop-Tarts line and the “Chill ’Em” advertising campaign, which urged consumers to try chilling  Pop-Tarts , was a great success.  Pop-Tarts sponsored the  American Idol ® tour, and launched limited-edition  Pop-Tarts for our “Cat in the Hat” movie tie-in.  Our other U.S. businesses collectively posted internal sales growth of 3% in 2003. This group includes lead- ing brands and alternative channels that present excel- lent opportunities for profitable growth.  Other U.S. Businesses Other U.S. Businesses: Leaders in Each Category #1 in $520MM Category 64% Dollar Share #1 in $369MM Category 43% Dollar Share #1 in $459MM Category 80% Dollar Share Kellogg Company 11 Europe U.S. Other U.S. Retail Snacks Latin Am. U.S. Retail Cereal All Other % of KELLOGG NET SALES