In 1998, Kelloggs launched Kellogs Frosties and the novelty of it took the company by surprise.

They immediately followed it up with the launch of Kelloggs Chocos and this was an instant hit and both together caused the sales to grow significantly in 2000. In 2001 Kelloggs made the largest acquisition of Keebler company worth $4.56 million. This required huge restructuring. At the same time the entire cereal market had been stagnating and hence sales were dropping. But due to this acquisition there was a bigger fall in the Return on Investment during that period.