Saturday, September 20, 2014

Kashi returns to its roots

It was not even one year ago that I commented on Kellogg's disappointment with Kashi, the natural food brand it had acquired fourteen years ago. It was becoming obvious that Kashi had lost its niche appeal and was becoming just another mainstream cereal brand. Coming under the Kellogg umbrella and relocating to Battle Creek has domesticated Kashi and lessened the passion that some consumers had for its cereals.

According to Food Business News Kellogg is recognizing that its big corporate approach to such a loved specialty brand isn't working and that Kashi needs to return to its roots. Last month the company announced that David Denholm, the former General Manager for Kashi in 2006-2008, is returning as the CEO of Kashi and that business will return to La Jolla, in southern California, where it was founded. Kellogg executive Paul Norman admitted that "when you come off a trend of health and wellness, you slip to the side, it can be quite painful," and that these latest moves are designed to "get on the front foot and get forward back into progressive nutrition."

This is an important move for Kellogg during a time when cereal consumption is shrinking and the big companies are struggling to be competitive. Breakfast cereal is not just about big business, but taps into people's passions and emotions. Executed well, this has the potential to give Kashi the boost it needs. If it works we may see similar moves at other brands.

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