- Kellogg will close its 89-year-old plant in London, Ontario, as cereal consumption falls. The facility provides Corn Flakes, All-Bran and Muslix cereals to markets in North America.
- The company will also shutter plants in Australia and Thailand, as Kellogg's adheres to a plan to reduce its workforce by 7%.
- The Ontario plant was particularly vulnerable to the cuts. Although Canada's currency has fallen, the drop has not been enough to offset higher costs. Heinz and Smucker's have also shuttered factories in Ontario recently.
Folks are losing their taste for cold cereal. That box of processed grains and sugar that served as the centerpiece of the breakfast table for decades is disappearing. Between concerns about sugar and childhood obesity, the rise of paleo diets and a disdain for grain, and the fears about GMO food, there seems to be little good news for cereal makers these days. So we can't say we're surprised to hear about the plant closure in Ontario. We can, however, say we're sad. We spent a week in London, Ontario, many years ago and have fond memories of some of the sweetest and hardest-working people we've ever met. We trust that the tiny city will bounce back from its present difficulties much quicker than the cereal industry will.