Kellogg’s Cereal Sales Aren’t Gr r-reat! - Howard Davidson Arlington MA

1. Kellogg’s Cereal Sales Aren’t Grr-reat!
by
Howard Davidson, Arlington, MA
Slide By :- Howard Davidson Arlington MA

2. Kellogg’s Cereal Sales Aren’t
Gr-r-reat!
All is not well in the land of Rice Krispies and Frosted Flakes. Kellogg
Co. has just announced yet another quarterly drop for its cereal
business, as well as plans to initiate a seven percent cut in its
workforce (roughly 2,000 jobs) by 2017. Yup, cereal sales at Kellogg
aren’t Gr-r-reat!
Slide By :- Howard Davidson Arlington MA

3. It’s shaping up to be a tough decade for sugary breakfast cereals,
which had long been seen as a permanent staple of the American
diet (over 90% of U.S. households are still buying it, after all). But
new competitors have appeared on the horizon, mostly in the
form of healthier alternatives like granola bars and Greek yogurt,
and cereal sales have declined for three straight years.
Slide By :- Howard Davidson Arlington MA

4. There’s also the cold hard fact that families in the U.S.
market have yet to bring their spending back to prerecession levels. Families have less money to spend at the
grocery store, and many of them are using their scarce
dollars to buy more nutritious food. Chief rival General Mills
has found some success by adopting healthier ingredients
and putting more weight behind its Yoplait yogurt brand, but
Kellogg has no such equivalent. Instead, Kellogg will roll out a
three-year cost cutting plan with the inappropriately jazzy
title “Project K.” Executives anticipate the plan will save
them roughly $1.3 billion by 2017.
Slide By :- Howard Davidson Arlington MA