Dive Brief:
- The most recent quarter was not a good one for cereal makers. Kellogg reported that revenue fell 4%. Post Holdings said net income swung to a $5 million loss from a profit of $7.6 million a year earlier.
- Kellogg's CEO told analysts the company would launch a major ad campaign aimed at improving consumers' perceptions of cereal.
- Post's earnings statement suggested that things could have been worse. Acquisitions boosted results that otherwise would have paid a heftier price for flat sales of cereal .
Dive Insight:
Looking at sales figures for cold cereal is enough to turn any executive's blood cold. The once-ubiquitous bowl of cereal and milk has been replaced by a number of new options. In fact, Americans seem to have developed a taste for things in the morning that are the opposite of cereal — they want a breakfast that is warm, portable and wheat- and gluten-free.