Dive Brief:
- Kellogg Co. reported a drop in U.S. cereal sales for the fifth consecutive quarter. Sales in the company's snack unit also fell.
- The company revised its full-year forecast, saying it now expects total sales for the year to drop by as much as 2%. The company had earlier forecasted an 1% rise.
- During the earnings call, Kellogg, maker of brands such as Special K, Froot Loops, Pop Tarts, and Pringles, restated its plan to launch a major marketing initiative aimed at promoting the health benefits of cereal.
Dive Insight:
Another quarter has passed, and the story is much the same as it was: cereal sales are bad, and Kellogg is going to tell people that cereal is good for them.
Wall Street seems to be losing patience with that. Shares fell nearly 6% yesterday (albeit in a down market). Kellogg is going to have to do something quickly -- produce some great ads, buy a company that doesn't make cereal or snacks, something, anything -- or things will get ugly soon.