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.