BATTLE CREEK, MI--Kellogg has appointed a new agency formed by Edelman to handle its $4m North American PR business, after initially selecting Weber Shandwick to the business.

Weber Shandwick, and sister firm Current Lifestyle Marketing, resigned the business shortly after winning it due to conflict concerns arising from a Kellogg competitor handled by another Interpublic Group agency.

Kellogg chose to repitch the business, and has appointed K Group Public Relations, a new firm formed by Edelman to avoid conflict concerns with existing clients. The new unit will be led by Edelman Chicago deputy GM and consumer EVP Kathy Krenger, a former director of marketing at Kellogg.

The new firm displaces Kellogg incumbents such as Hunter PR, Ketchum and MSLGroup, although Kellogg will continue to work with the latter two firms on a variety of assignments.

"The K Group Public Relations Company will provide a unique solution for our brands with the creation of a new business entity dedicated exclusively to Kellogg, and will provide a best-in-class resource for our needs today and for the future." said Kellogg communications director Brandy Ruff in a statement. "We continue to work with Ketchum and MSL Group on a variety of our projects for corporate communications, internal communications and cause-related marketing programs."

The pitch was revealed by the Holmes Report in mid-2011, and involved efforts by Kellogg to build a cohesive consumer PR platform for all of its brands in North America.