A decrease in breakfast cereal sales and a product recall for RXBar – initiated ‘out of an abundance of caution’ – have impaired Kellogg’s first-quarter earnings.
The Kellogg Company has reported lower-than-expected fourth quarter sales due to continued weakness in cereal but its president and CEO says the company can still win at the breakfast occasion.
Investment in cereal makes sense for Kellogg because it cannot sideline such an important segment but snacks should really be the priority, an analyst says.
Cereal giant, Kellogg, has sealed its buy-out of Pringles for US$2.7bn, set to triple international business and stack it into second place on the global snacks market.
Kellogg’s $2.7bn deal to acquire Procter & Gamble’s Pringles will significantly boost its global snacks presence and open existing products up to new markets, according to analysts.
