Tuesday, November 08, 2011

Challenges at Kellogg

Recent quarterly financial reports from Kellogg suggest the company continues to face some major challenges. Profits are down 14%, and like a growing number of countries the company is facing a rating review from Moody's Investor Service. The pressure comes as a result of several factors including higher grain prices and a highly competitive marketplace, all this despite trying to cut costs and increase prices.

As I've been saying for awhile now, the big cereal companies are in a difficult position despite their strong brand positions. Consumers are restless and exploring new, authentic options. Can Kellogg's stand out in this environment?

Source: Wall Street Journal - article 1, article 2

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