US cereal giant Kellogg has broken with tradition and signed a deal to produce five cereals for German discounter Aldi under the Gletscher Krone brand. This is the first time in the company's history it has produced anything other than Kellogg's branded products. Kellogg says the move into own label will be limited to Aldi, and will account for a "very small" proportion of its overall volumes and sales. The company claims it is part of a strategic plan to cut costs and streamline production in Europe. Kellogg is denying its foray into own label cereal production is the start of more to come. But analysts warned this activity needs to be handled separately from branded, with administration costs increasing accordingly. One analyst said it gave customers more power to negotiate prices for branded products. "But it does not necessarily mean the start of a slippery slope for Kellogg's and other big name manufacturers," he added. {{NEWS }}

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