Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/4/2013 (2 years ago)

Catholic Online (www.catholic.org)

Cereal super company experiencing sales slump

The world's largest maker of breakfast cereals, Kellogg Company has announced that it would cut about seven percent of its workforce by 2017. They also announced that they would trim production capacity. It's been a tough few years for the cereal industry; there's been another quarterly decline in sales in its cereals business.

Limited edition art sculpture Sugar Frosted Fat Tony, a vinylized riff on Kelloggs' Tony the Tiger, has 'humorously exaggerated' the mascot's heft as a commentary on the low nutritional value of the cereal.

Limited edition art sculpture Sugar Frosted Fat Tony, a vinylized riff on Kelloggs' Tony the Tiger, has "humorously exaggerated" the mascot's heft as a commentary on the low nutritional value of the cereal.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

11/4/2013 (2 years ago)

Published in Business & Economics

Keywords: Kellogg, layoffs, cereal, sales, recalls


LOS ANGELES, CA (Catholic online) - The maker of such baked favorites as corn flakes, Keebler cookies, Froot Loops cereals and Eggo waffles enjoyed a four percent boost. However, the company's cereals business, which includes Special K corn flakes and Rice Krispies has faced high competition from General Mills Inc. as well as private-label cereal brands.

Coupled with the Increasing popularity of yogurt, frozen egg sandwiches and other breakfast items has also hit the cereal business. Sales at Kellogg's U.S. morning foods business fell 2.2 percent in the third quarter ended September 28.

Called Project K, the layoffs are a part of a four-year cost-cutting program that the company launched this week. The program includes consolidating factories and product lines, moving them closer to its regional hubs.

About two-thirds of the expected pre-tax charges of $1.2 billion-$1.4 billion over the course of the program would come from supply chain-related actions.

"The primary source of savings will be from consolidating facilities and eliminating excess capacity. It will not be from reducing headcount in our operating plants," Alistair Hirst, senior vice president of the company's global supply chain said.

Kellogg also said it would invest in building its cereal brands and developing its business in emerging markets.

"Overall, net-net it was an okay quarter but the big surprise was the cost cutting, and I think investors are viewing that positively," Edward Jones analyst Brian Yarbrough said.

Project K follows a three-year initiative, K-Lean, that Kellogg had launched in 2009 to save $1 billion in annual costs.

There was a fly in that ointment to that particular practice - Kellogg's quality control weakened due to too many job cuts, leading to product recalls. Between 2009 and 2011, Kellogg recalled packages of cereals, cookies and protein bars.

A birth foretold: click here to learn more!

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Business & Economics

Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


Obama's Saudi masters order him not to sign 9/11 bill Watch

Image of It's not about the victims, it's about the Saudis.

By David Drudge (CALIFORNIA NETWORK)

Saudi Arabia is about to escalate their economic war with the United States should Congress pass a law that will allow victims of the 9/11  terrorist attacks to sue foreign states. The Obama administration opposes the bill and is lobbying against it. LOS ANGELES, ... continue reading


You won't believe how California's rich spend their money! Watch

Image of Top 1 percent pays nearly half of all California taxes (istockphoto).

By Kenya Sinclair (CALIFORNIA NETWORK)

When you think of California, images of sandy beaches, sun-kissed skin and Hollywood stars flash through your mind - and you're not wrong! California's rich enjoy all the sunny state has to offer - but at what cost? LOS ANGELES, CA (Catholic Online) - According to ... continue reading


Tesla KILLS American car industry in just 3 days. GOOD! Watch

Image of The Tesla Model 3 will sell for an average price of $42,000. Subsequent competition and models will reduce future prices even further.

By Marshall Connolly (CALIFORNIA NETWORK)

Tesla has blown away all predictions, selling over 276,000 pre-orders of their affordable Model 3 electric car, within 72 hours of going live. The massive public interest reveals a major shift in public preferences and should send shockwaves through the auto industry. ... continue reading


You won't believe what JUST happened to Walmart! Watch

Image of What does Walmart's revenue drop mean (WalmartDid).

By Kenya Sinclair (CALIFORNIA NETWORK)

The discount giant has received its first dip in revenue since its inception in 1996. Can the drop signify the beginning of the end? LOS ANGELES, CA (Catholic Online) - The digital age has marked a permanent shift in the way humanity perceives the world.One smartphone ... continue reading


Why Democratic Socialism is coming to America, whether you like it or not, and what you can do about it (but won't) Watch

Image of Presidential hopeful Bernie Sanders is a self-described democratic socialist. His movement is popular with millennials who are coming of age.

By Marshall Connolly (CALIFORNIA NETWORK)

America is in more trouble than people realize and here's why. The middle class is becoming poor, and as the ranks of the poor grow, our national politics will change. LOS ANGELES, CA (California Network) - The United States is changing and many people are having a ... continue reading


You'll never believe what the U.S. government is doing with $917 billion Watch

Image of How much do YOU owe (Shutterstock)?

By Kenya Sinclair (CALIFORNIA NETWORK)

How often do you swipe your credit card without considering your credit limit? When you don't have funds in your checking account, do you turn to credit cards to cover groceries, outings or bills? Have you considered what that credit card debt can do on a larger scale? ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • 'Our warriors are everywhere': ISIS uses CHILDREN to threaten Europe
  • St. Matthew HD Video
  • Daily Readings for Wednesday, May 04, 2016
  • Your Daily Inspirational Meme: I fear no evil!
  • St. Florian: Saint of the Day for Wednesday, May 04, 2016
  • Daily Reading for Thursday, May 5th, 2016 HD Video
  • Captain James Cook wreckage discovered!

Daily Readings

Reading 1, First Corinthians 15:1-8
1 I want to make quite clear to you, brothers, what the message of the ... Read More

Psalm, Psalms 19:2-3, 4-5
2 day discourses of it to day, night to night hands on the ... Read More

Gospel, John 14:6-14
6 Jesus said: I am the Way; I am Truth and Life. No one can come to the ... Read More

Saint of the Day

Saint of the Day for May 3rd, 2016 Image

St. James the Lesser
May 3: St. James the Less, the author of the first ... Read More