Thursday, November 09, 2006

Beware the shrinking box

A Consumer Reports article reveals that cereal manufacturers will be shrinking boxes on some cereals as a tactic to deal with increasing costs. Kellogg is leading the way with Frosted Flakes, Rice Krispies and Frosted Mini-Wheats, and it is expected that other brands and manufacturers may follow suit.

Sneaky? Yes. Necessary? Probably, if they want to maintain profits, etc. Good for business? Over the long term, probably not. I know the cereal industry is facing many challenges, including increased competition and possible lower consumption trends, but they must find more ways to bring value to consumers. Only in this way will they survive over the long haul.

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