Kellogg has agreed to pull a health claim it made on Rice Krispies in the US, the country’s advertising watchdog said yesterday.The cereal giant had advertised its Rice Krispies brand as helping “support your child’s immunity”. However, after a probe by the Federal Trade Commission, Kellogg has agreed to not make claims about any potential health benefits unless it has scientific evidence, the watchdog said. The deal is the second Kellogg has made with the FTC. Last year,... ...Read more »

Kellogg has played down the significance of declining fourth-quarter sales volumes, which came in spite of the cereal giant’s increased investment in advertising during the period.The world’s largest cereal maker posted a 1.7% drop in fourth-quarter earnings yesterday (4 February) after revenue fell 1% on the back of a 1.4% decline in volumes. Nevertheless, speaking on a conference call to analysts, management insisted that the group’s strategy to drive brand value through increased... ...Read more »

The world’s largest cereal maker has reported a net sales decline of two per cent for 2009, although cost reduction strategies helped them to a record profit. Reported earnings for full-year 2009 were $1.2 billion, an increase of 6 per cent from full-year 2008 of $1.1 billion – the figures failed to meet Wall Street’s expectations, however. “We continued our momentum in 2009, delivering another year of growth despite facing one of the most challenging economic environments... ...Read more »

Consumer product firms Kellogg Company and Unilever have announced changes at the head of their organisations, with cereal group Kellogg advising of their new Chief Financial Officer while Unilever reported the resignation of theirs. Unilever said that its CFO, James Lawrence, has decided to resign from the boards of the maker of Streets and Lipton at the end of the year, just over two years after joining the firm. “It’s been an excellent time for me and I have made many good friends... ...Read more »

Kellogg said today (12 November) that it has seen the pace of its net sales growth moderate over the past year, with expansion held back by limited opportunities in high-growth, emerging markets. Speaking at the group’s investor day, Kellogg CEO David Mackay said that the group had seen slower top-line growth this year than in the previous four years due to the cyclical nature of the market, which has seen the cereal giant pushed through fewer price increases. The company expects sales growth... ...Read more »

The world’s largest cereal maker, Kellogg Company, has reported a year-on-year 6% surge in earnings for the third quarter but sales were down slightly due to the impact of foreign currency translation. “The current economic environment has placed significant pressure on our consumers,” David Mackay, Kellogg Company CEO, said. “However, the environment also provided us with both the incentive and the opportunity to build an even stronger company for the future. We are aggressively... ...Read more »

Kellogg Company, the world’s largest cereal maker, has reported a strained relationship with a key Australian retail customer – either Coles or Woolworths – during a conference call following the release of better-than-expected results. The manufacturer did not say which chain they were having difficulties with, but advised that there was an “issue” with one of the two major chains down under. “In Australia, we were negatively impacted by challenging negotiation... ...Read more »

Kellogg Company has posted double-digit growth in second quarter, surpassing expectations of analysts as private label growth begins to slow. David Mackay, Kellogg’s Chief Executive Officer, said the cereal manufacturer had so far managed to efficiently negotiate challenging conditions and ongoing cost pressures. “We remain committed to delivering sustainable and dependable performance as we work through the current tough economic environment,” he said. “This focus continued... ...Read more »

Breakfast continues to be a source of debate between cereal companies and obesity lobbyists, with the Advertising Standards Board asked to use the AANA Food and Beverage Code to settle the score. And Kellogg’s has won the latest battle. “A complaint about claims and nutritional benefits of a breakfast cereal has resulted in a determination in favour of the cereal company based on the Board’s understanding of how the target audience would interpret the advertisement,” Advertising... ...Read more »

UK supermarket chain Sainsbury’s has rid their private label cereal of cardboard boxes, a move which could be followed by some of the sector’s heavyweights. The decision will help to cut packaging on its entire range of products by a third, with the retailer to simply use recyclable plastic packaging commonly used by potato chip makers. Australia’s Sanitarium and the world’s largest cereal maker, Kellogg’s, have both indicated they were also contemplating the idea as... ...Read more »