Food & Beverages

Kellogg shifting its focus to the Snacks Department

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Brand Kellogg although satisfied with their food productivity programs that are yielding good profits with marginal profits and greater cash flow, top executive of the company said that they are not 100% satisfied with top-line performance. These performances were addressed by the Battle Creek which is a Michigan based company highlighted four main areas. This was informed on September 6 by John A. Bryant chairman and CEO at a presentation at the Barclays Global Consumer Staples Conference in Boston.

The main stress was on the challenges faced by their popular product ‘Special K’ in the presentation by Mr. Bryant. This product was a huge hit in the 2000s that primarily focused on weight management supported by its ingredients that are low in fat and calorie, but from past few years consumers have shifted their preferences and are not very calorie conscious as earlier, said Mr. Bryant. Following the consumer behavior Kellogg has shifted their focus from weight management to building inner strength. Company’s products have undergone renovation.

Next area of focus that ruled the discussion was Kellogg’s exposure to snacking items. Mr. Bryant informed, total sales of Kellogg’s snacks contribute to half of total company sales, which is equal to same size as total sales of company in 2000.

From past few years Kellogg has shifted its focus in becoming more of Snacks Company that gives better profits. The third focus area discussed by Mr. Bryant is to make sure that the company’s popular products are available on more number of channels compared to the present situation. The important outlets would be e-commerce sites, mom and pop stores, high frequency stores, vending channels and convenience stores. 

Fourth focus area in the presentation was emerging markets of Kellogg. Mr. Bryant said, “There’s no question that the emerging markets is the defining event in our lifetimes, and the food industry is a macro megatrend that will continue to provide growth for large food companies like Kellogg,”

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