Dive Brief:
- Kellogg's declining cereal sales could be having a domino effect - union employees rejected a proposed contract change over the weekend, which would have altered "employee health care benefits and wage adjustments...at the company's four U.S. cereal plants," according to the Battle Creek Enquirer.
- "The reality is that significant challenges remain — the (ready-to-eat cereal) category continues to decline and that leaves us with far more production capacity than we need in our U.S. cereal network," Kris Charles, a Kellogg spokesperson, said.
- Employees are set to perform their duties "under the current master contract" through its expiration next October.
Dive Insight:
This isn't too surprising considering the aforementioned fall of cereal sales, but the potential closure of cereal plants would certainly affect many people. David Durkee, The Bakery, Confectionery, Tobacco Workers and Grain Millers International president, forewarned these possible closings, according to the Battle Creek Enquirer.