Exhibit 99(1)

News Release



The Quaker Oats Company
                            Further Information:
                            Investor  :              Media:
Quaker Tower                Margaret Eichman, VP     Mark Dollins, Director
P.O. Box 049001             Investor Relations       Corp. Communications
Chicago, IL  60604-9001     and Corp. Affairs        (312) 222-6914
                            (312) 222-7818


QUAKER CHAIRMAN ANNOUNCES ORGANIZATIONAL CHANGES;

USES COMPETITIVE STRENGTHS TO TARGET ACCELERATED PROFITABLE GROWTH
  
For immediate release

       CHICAGO, March 12, 1998 -- (NYSE:OAT) Quaker Oats Chairman, President
and   Chief   Executive  Officer  Robert  S.  Morrison   today   announced
organizational  changes  designed to capitalize  on  Quaker's  competitive
strengths  in  marketing, selling and manufacturing. Morrison  said  these
actions  are  designed  to  facilitate faster top-line  growth  and  drive
greater  cost savings and efficiencies throughout the Company's  worldwide
operations.
        "The  realignment we're announcing today should allow us to  exploit
the  leading  capabilities  we've developed  across  all  our  divisions,"
Morrison said. "As a management team with a broad base of skills and cross-
functional talent, we can focus on accelerating profitable growth and  use
our size as a  competitive advantage."
      Structural changes include removing a layer of executive  management
from  the  Company's  International and U.S. &  Canadian  operations,  and
realigning  domestic  and  international   business  leaders  into  direct
reporting relationships with the Chairman.
        Under   the   new   structure,   two   International   presidents'
responsibilities  will  be  expanded to include  the  foods  and  Gatorade
businesses  in their respective regions, reporting directly  to  Morrison.
Promoted  are Bernardo Wolfson, Vice President and President-Quaker  Latin
America,  and  Cassian  Cheung, Vice President and President-Quaker  Asia.
The head of Quaker's European cereals division, George Sewell, will report
to Robert S. Thomason, Quaker's chief financial officer.
      "Getting  the  results  we want from our Asian  and  Latin  American
businesses requires a single, integrated management effort, focused on the
combined scale of our Quaker and Gatorade equities," Morrison said. "These
two  executives are aggressive, top performers who have local insight into
the  consumer,  as well as the changing infrastructures and  economies  in
their regions. This experience is critical in rapidly developing markets."
      In U.S. and Canadian operations, several key marketing, supply chain
and  customer  organization  executives also  are  being  promoted.   They
include:   Susan  D.  Wellington to the position  of  Vice  President  and
President  -  U.S.  Beverages;  Harry M. Dent  to  the  position  of  Vice
President and President  - Ready-to-Eat Cereals; Charles I. Maniscalco  to
the position of Vice President and President - Snacks; Polly B. Kawalek to
the  position  of  Vice President and President - Hot Breakfast;  Mark  A.
Shapiro  to  the  position of Vice President and President -Golden  Grain;
Russell A. Young to the position of Senior Vice President - Supply  Chain;
and  Terrence B. Mohr to the position of Senior Vice President -  Customer
Organization.
        Additionally,  John  A. Boynton, formerly Vice President  and  Chief
Customer  Officer  of the domestic Foods business, is promoted  to  Senior
Vice President, reporting to the Chairman. In this role, Boynton will have
responsibility for helping lead the reorganization effort, with continuing
focus  on  integrating Quaker's Foodservice business into the  U.S.  Foods
organization.  Dale Tremblay, Vice President and President -  Foodservice,
will continue to report to Boynton.
      "The leaders promoted today represent the nucleus of Quaker's highly
talented middle management group," Morrison said. "I have great confidence
in  their  abilities to step into senior executive management  roles,  and
profitably grow our businesses."
      "This  alignment  allows us to apply our best talent  and  our  best
practices  broadly  across Foods and Gatorade.  At  the  same  time  we'll
reduce  overhead  costs,  putting us in a position  to  pursue  profitable
growth more aggressively," Morrison said.  "The power of our brands.   The
strength  of  our  customer organization.  The efficiency  of  our  supply
chain.   The  will to win.  These things form the foundation for  Quaker's
future growth and our ability to create value for shareholders."
     The Company's former structure, with executive division heads located
in  the  United States, is less relevant with Quaker's new focus on  Foods
and  Gatorade  --  and  its  need to exploit best  practices  across  each
continent.   As  a result, the individuals in those roles  --  Barbara  R.
Allen,  Executive Vice President - International Foods,  James  F.  Doyle,
Executive  Vice  President  Worldwide Beverages,  and  Douglas  W.  Mills,
Executive Vice President - U.S. and Canadian Quaker Food Products --  will
be  leaving  the  Company.  "They are fine executives who have  made  many
contributions  and  helped groom the talented individuals  being  promoted
today," Morrison said.
      The  Company  expects an estimated restructuring  charge  of  $15-25
million  will  ultimately  result, as realignment  activities  take  place
during  the  year. These actions are expected to save the Company  in  the
range of $15 to $25 million annually, when completed.
 
Forward Looking Statements
This  announcement contains "forward-looking statements" that are  subject
to  risks  and uncertainties.  The potential risks and uncertainties  that
could  cause  actual results to differ materially from those expressed  in
the  forward-looking  statements are discussed in the Company's  Quarterly
Report on Form 10-Q for the quarter ended September 30, 1997.
                                   # # #

The  Quaker Oats Company press releases are available at no charge through
PR  Newswire's Company News On-Call Fax Service.  For a menu of  available
Quaker Oats Company press releases or to retrieve a specific release, call
1-800-758-5804,  extension 103689.  They are also  available  through  the
Internet:  http://www.quakeroats.com.

available at no charge through
  PR  Newswire's Company News On-Call Fax Service.  For a menu of  available
  Quaker Oats Company press releases or to retrieve a specific release, call
  1-800-758-5804,  extension 103689.  They are also  available  through  the
  Internet:  http://www.quakeroats.com.