Friday, July 30, 2010

The price of a recall

Not to dwell on the topic, but the recent Kellogg's recall has hit the company's bottom line. Second quarter financial results reveal a 15 percent drop in profits. Their stock price dropped over 4% as a result of the news.

Kellogg is certainly to recover eventually from this costs associated with this recall. The bigger question is how long it will take to restore consumer confidence, especially since they were less than forthright in fully explaining the causes behind the recall.

Source: AP

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Tuesday, July 27, 2010

Cereal records?

It's a slow summer in the cereal world, which allows opportunity to reflect far too long on relatively meaningless developments.

For example, in Indonesia this past weekend a new record was broken where 2,274 people cereal together for the first time. Exciting, eh?

What other cereal eating records should people be attempting? Maybe we need something like the annual hot dog eating championship every July 4th: Crazed contestants forcing down bowls of Froot Loops, or maybe All-Bran?

I think the heat is getting to me.

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Monday, July 19, 2010

Kellogg's recall - update

Kellogg's recent voluntary recall of certain cereals gained some media attention, but the biggest criticism leveled against them concerned the fact that they didn't immediately disclose the ingredient that was causing the unusual flavor and odor. Since then it has been revealed that the culprits are hydrocarbons, specifically hydrocarbon methylnaphthalene, whose safety is yet to be firmly established.

As with all public relations matters the question is whether Kellogg handled this in the best manner. Discerning consumers are demanding more accurate information upfront. And, if because of the nature of this ingredient the perception could grow that many processed breakfast cereals are far from being has healthful as they should be.  This could also influence public regulators to get involved.

It will be interesting to see if this recall and the fallout from it affects their bottom line.

(Source: New York Times)

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Tuesday, July 06, 2010

Hulk Hogan sues Post

I missed this story from a few weeks ago, but it is one worth noting. Former wrestling star Hulk Hogan (real name: Terry Bollea) has launched a lawsuit against Post Foods because of a character the latter developed. "Hulk Boulder" has some likeness to Hogan and is used in a Stone Age-themed Cocoa Pebbles commercial with Fred Flintstone, Barney Rubble et al.

(Source: New York Times)

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