Dive Summary:
- With a first quarter profit decline of 11%, Kellogg CEO John A. Bryant said the company would drive growth in the "lagging" adult cereal category with new product launches for Special K, Kashi and Raisin Bran.
- Matthew Hudak, a packaged foods analyst for Euromonitor, suggested that snack foods, particularly snack bars, would be a better priority, noting that while they can't afford to be less competitive in cereals, interest in snacks will see higher growth in the long run.
- Kellogg currently has plans to launch two new snack crackers with Cheez-It Zings and Town House Pita, as well as new cookies, as well as plans for an expansion of "drinkable" breakfast options and a mid-year hot cereals launch.
From the article:
... "Consumers increasingly want to have a quick but tasty way to eat on the go or whenever they have small snack cravings. Snack bars work very well here," he said.
Hudak said it would be crucial to marry taste, convenience and health together in any new product development. ...
