WASHINGTON (AP) -- Kellogg Co., the world's largest cereal maker, has agreed to raise the nutritional value of cereals and snacks it markets to children.

The Battle Creek, Michigan, company avoided a lawsuit threatened by parents and nutrition advocacy groups worried about increasing child obesity. Kellogg intends to formally announce its decision Thursday.

The company said it will not promote foods in TV, radio, print or Web site ads that reach audiences at least half of whom are under age 12 unless a single serving of the product meets these standards:

--No more than 200 calories.

--No trans fat and no more than 2 grams of saturated fat.

--No more than 230 milligrams of sodium, except for Eggo frozen waffles.

--No more than 12 grams of sugar, not counting sugar from fruit, dairy and vegetables.

Kellogg said it would reformulate products to meet these criteria or stop marketing them to children under 12 by the end of 2008.

"By committing to these nutrition standards and marketing reforms, Kellogg has vaulted over the rest of the food industry," said Michael F. Jacobson, executive director of the Center for Science in the Public Interest. "This commitment means that parents will find it a little easier to steer their children toward healthy food choices -- especially if other food manufacturers and broadcasters follow Kellogg's lead."

Jacobson's nutrition advocacy group, along with two Massachusetts parents and the Boston-based Campaign For A Commercial-Free Childhood, had served notice in January 2006 of intent to sue Kellogg and the Nickelodeon cable TV network under a Massachusetts law to stop them from marketing junk food to kids.

Center spokesman Jeff Cronin said Kellogg contacted the plaintiffs shortly thereafter and began negotiating the new standards, so the lawsuit was not filed and will not be filed.

"We are pleased to work collaboratively with industry and advocacy groups to unveil these standards," said David Mackay, Kellogg's CEO. "We feel the Kellogg Nutrient Criteria set a new standard for responsibility in the industry."

With 2006 sales of almost $11 billion (euro8.3 billion), Kellogg is not only the No. 1 cereal-maker but also a leading producer of snack foods. Its brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Rice Krispies and Famous Amos.

Globally, 50 percent of the products Kellogg markets to children do not meet the criteria, said Mark Baynes, Kellogg's chief marketing officer. A third of the cereals it markets to children in the U.S. fall outside standards.

Pop-Tarts and Fruit Loops do not meet the criteria, though most cereals fall inside the calorie guideline, Baynes said. Meeting the sugar and sodium standards could be the most challenging.

Earlier this month, a Federal Trade Commission study found that half the U.S. ads for junk food, sugary cereals and soft drinks are on children's programs, double the percentage 30 years ago. Children between ages 2 and 11 saw approximately 5,500 food ads on television in 2004, half of them on kids' shows with audiences of 50 percent children or greater.

American companies spend about $15 billion (euro11.3 billion) a year marketing and advertising to children under age 12, the Institute of Medicine said last year when it warned that one-third of American children are obese or at risk for becoming obese.

In response, Kellogg and McDonald's Corp. joined eight other major food and drink companies last November in an industry-sponsored pledge to promote more healthy foods and exercise in their child-oriented advertising. A year earlier, Kraft Foods Inc. had promised to curb ads to young children for snack foods, including Oreos and Kool-Aid.

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Associated Press writer Ann Sanner contributed to this report.