Dive Summary:
- In their most recent earnings statement, Post Holdings told investors they had lost half a point of market share since Q1 of last year.
- Post said the loss was self-inflicted, as it drew much of its funding into research for new products to be released in the near future.
- The company saw it as an investment in their future and hope to see more growth during the rest of the fiscal year with a string of well researched product launches.
From the article:
Terence Block, president and Chief Operating Officer of Ralcorp, said: “The decline was largely Honey Bunches of Oats related and somewhat self-inflicted as we made the spending decision to reallocate funding to better support our innovation pipeline and new advertising campaigns breaking in our second quarter behind Honey Bunches of Oats, Great Nuts and Shredded wheat."
He added: “We obviously have a lot more work to do to become a long-term share gainer”