Clark to senior vice president with worldwide respon- sibility for Corporate Affairs. Key general managers from around the world were named corporate officers for the first time: Elisabeth Fleuriot, managing direc- tor, Kellogg France, Benelux, Scandinavia, South Africa; Juan-Pablo Villalobos, managing director, Kellogg de Mexico; and Paul Norman, managing director, United Kingdom/Republic of Ireland. Their promotions reflect the value of their personal contri- butions and the strategic importance of these markets. The result is a stronger organization: The right people in the right jobs; a commitment to develop tomorrow’s leaders; steps to create a safer, more diverse workforce; and a winning culture. This, more than anything else, will make us an even better company in the future. category across the globe, giving us the best opportunity to expand consumption. When managed well, we can generate strong, profitable growth in cereal. In 2003, our U.S. cereal sales increased by 7%, and our international cereal sales were up 4% in  local currencies. We are in the enviable position of not having to create a new strategy. We already have a game plan, an approach to the business that can achieve dependable growth. Shaped by many people throughout our Company, it has evolved over the past few years into a simple and distinctly Kellogg plan. Our challenge now is to continuously improve our execution. The game plan centers on the following priorities: We are a very focused company. Between cereal and wholesome snacks, the vast majority of our sales take place in a single aisle of most stores and channels. We believe it is a competitive advantage to concentrate our resources on categories in which we have scale, expert- ise, and leading brands, as opposed to participating in a large number of categories that can distract us from what we do best. Our strategy underscores our focus: Grow Cereal, Expand Snacks, Pursue Selective  Growth Opportunities. Grow Cereal. Ready-to-eat cereal accounts for more than half of our Company’s net sales: That’s a good thing. Cereal is a large and profitable category that re- acts to brand building and innovation. It offers consumers convenience, fun, and great taste, and it contributes to a healthy, well-balanced diet. It’s also what we do best. We have leading shares in this In the U.S., while wholesome snacks have performed extremely well, they represent less than 20% of U.S. Snacks’ sales. Their double-digit sales growth in 2003 was offset by a decline in cookies sales, amidst weak category demand and price promotion by competitors. A key priority for 2004 will be stabilizing our cookies business, while maintaining share in crackers and grow- ing wholesome snacks.  In 2003, we showed continued progress in expanding our snacks business. Core international markets such as Mexico, Australia, and the U.K. showed strong dou- ble-digit net sales growth in snacks, and their innova- tion pipelines are strong. Our success has attracted a lot of competition, and yet we have held our own in tough environments. Expand Snacks. Snacks, and particularly wholesome snacks, continue to grow faster than other food categories. We are well positioned to participate in this growth. We have strong, extendable brands and an ex- pertise in grain- and fruit-based foods. In the U.S. and Mexico, we have direct store-door distribution, giving us an in-store advantage. And wholesome snacks are usu- ally located right in the cereal aisle.  Our Game Plan for 2004  and Beyond • Sticking to our Focused Strategy Pursue Selective Growth Opportunities. Beyond ce- real and snacks, we also participate in other nearby cat- egories using strong regional brands. For example, in the U.S. we have  Pop-Tarts ® , #1 in toaster pastries; Eggo ® , the leading frozen waffle brand; and Morningstar Farms ® , the largest frozen meat- alternatives brand. Brands like these offer good, profitable growth.  We believe it is a competitive advantage to concentrate our resources on categories in which we have scale, expertise, and leading brands, as opposed to participating in a large number of categories that can distract us from what we do best. 5 Kellogg Company