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The Food Institute Blog

The Food Institute Blog

Changing Consumer Tastes Impacts Kelloggs
Posted on February 13, 2015 by Bryan Wassel

The Kellogg Co.'s breakfast food sales declined 7.7% in fourth quarter 2014, which CEO John Bryant attributed to changing views among weight watchers hurting its flagship Special K brand. While healthy eaters previously turned to Special K, it was presented as a way of "holding back calories," while modern consumers want foods that make them feel good about themselves, reported Modesto Bee (Feb. 12).

Kellogg will change the way it markets Special K to help recapture the market, including launching a new gluten-free variety of Special K intended to be more in line with prevailing trends.

The company's snack business is also suffering, with sales down 3.1% for the quarter. Changing habits also had an effect in this segment, where the company's low-calorie options took a hit as consumers turn elsewhere for healthy snacking alternatives. Sales of Kellogg's Right Bites line plummetted 60%, according to Bryant.

Despite its troubles, low single-digit annual revenue growth for cereal is still possible, according to Bryant, reported Reuters (Feb. 12).

 

About the Author

Bryan Wassel
Editorial Director
The Food Institute

With a background in both daily and weekly publications, Bryan has worked as a journalist since freelancing for his hometown paper in high school. He has since written both in print and online for min, The Times of Trenton and North Jersey Media Group, holding positions from stringer to editor. With a background as a news reporter, he has learned to seek out the focus behind the story, digging for the most important information. He has been with The Food Institute since 2013, where he edits Today in Food and The Food Institute Report, as well as puts together newsletters for several clients.

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