Kellogg's warns for smaller growth | RetailDetail

Kellogg's warns for smaller growth

Kellogg's warns for smaller growth

American food producer Kellogg, best known for its breakfast cereals, has struggled in the previous quarter and has adjusted its long-term growth forecast downward.

Diet breakfast cereal are "thing of the past"

Kellogg had envisioned a 3 to 4 % long-term turnover increase, but has now lowered that to 1 to 2 %. Last year's turnover had already dropped 2 % and Kellogg expects a status quo for this year. The company is particularly struggling in its home market,  where its like-for-like turnover in the breakfast cereal branch dropped 7.7 % and its snack branch also dropped 3.1 %.

 

The company fears it has too many products focused on losing weight, while that hype has passed, and will therefore refocus a number of products to other markets. 

 

Kellogg's fourth quarter net turnover grew 0.3 % to 3.51 billion dollars (3.07 billion euro). Changes in its employee retirement plan has also seriously impacted its bottom line, with a 293 million dollar loss (256 million euro). The year before, it still managed a 818 million dollar profit.

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