Monday, Feb. 10, 1986

Business Notes Food

Is somebody trying to steal secrets from Tony the Tiger? Apparently so, according to officials at Kellogg headquarters in Battle Creek, Mich. Since 1907, millions of people have toured the Kellogg plant where Special K, Rice Krispies, Frosted Flakes and other popular cereals are produced. Unfortunately, the company says, at least two recent visitors have actually been industrial spies sneaking a peek at the company's technology. Last week, in a move to foil further plots, Kellogg announced that it will no longer conduct public tours inside the factory.

Kellogg says that it is spending $500 million to modernize its main plant and that the counterespionage strategy was necessary to guard its technological secrets. The retooling is part of an effort to develop cereals for new market niches. In the past three months, Kellogg has introduced two products to appeal to health-conscious adults: Just Right and Raisin Squares.

Kellogg's move has caused consternation among members of the local Chamber of Commerce. City boosters say that with no more plant tours, their tourist industry will lose its snap, crackle and pop. They may be right. The town's best remaining attractions are a bird sanctuary and the Battle Creek zoo.