line extensions and distribution to our existing brands, including new flavors of  Cereal & Milk bars,  Special K ® bars,  Nutri-Grain ® bars and  Nutri-Grain ®  Minis, and Fruit‘N Fibre TM bars. The U.K.’s results offer a great example of what  Volume to Value  can do. Latin America remains our fastest growing region in the world. We have leading category shares, a long-stand- ing presence, and a strong local management team that is adept at managing through the volatility inherent in that region. Per capita consumption of ready-to-eat cereal continues to grow, and yet remains well below levels of developed markets. This points to sustainable category growth. Furthermore, rising disposable income and increased snacking suggests very attractive potential for our small, but rapidly growing wholesome snacks business in key markets of Latin America. This same approach was taken in our other European markets, as well. We generated good growth in coun- tries like France, where our share of the ready-to-eat cereal category rose more than 2 points, and in other markets like Spain and Italy, where cereal consumption continues to grow. In each case, the gains were driven by better brand-building initiatives and more differenti- ated innovation. Examples of brand building and inno- vations in Europe abound, both in cereal and in whole- some snacks. We continued to roll out  Special K ® bars into new markets, and we successfully launched new Special K ® cereal flavors like  Chocolate and  Peach & Apricot . Reformulations, line extensions, and better advertising have driven our  Kellogg’s Extra ® brand across Continental Europe. In 2004, Kellogg Europe should again generate local- currency sales growth. Increased investment in brand building and innovation should continue to grow cere- al sales in key markets, and we will continue to expand our wholesome snacks business across the region. All the while, our emphasis will be on continuously improving execution.  In 2003, Kellogg Latin America posted net sales growth of 2% in U.S. dollars, held back by currency devaluation. In local currencies, our growth was an impressive 13% driven by both price/mix gains and tonnage. Both cereal and wholesome snacks posted double-digit growth.  Mexico is by far our largest market in Latin America, and Kellogg de Mexico turned in another standout per- formance in 2003. Despite heavy competition from price brands and bagged cereals, our cereal business held its leading share, and posted double-digit net sales Latin America Europe U.S. Other U.S. Retail Snacks Latin Am. % of KELLOGG NET SALES U.S. Retail Cereal All Other 14 Earning Our Stripes