Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/4/2013 (1 year 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 (1 year 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'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... continue reading


Is pot the future boom business? The founder of Pay Pal thinks so Watch

Image of The co-founder and former CEO of PayPal, Peter Thiel is investing multiple millions of dollars into Privateer Holdings, a Seattle-based marijuana growing, production, distribution and information company.

By Matt Waterson (NEWS CONSORTIUM)

Founders Fund, a $2 billion dollar, San Francisco-based venture capitalist firm ran by the co-founder and former CEO of PayPal is moving in a new investment direction, turning towards pastures a little greener than former tech and Silicon Valley ... continue reading


Here is the top 10 list of the world's most widely used currencies. Numbers 9 and 10 surprised us! (PHOTOS) Watch

Image of The list of most widely used currencies will surprise you. Confederate money was once sold in bundles to kids for use as play money.

By Catholic Online (NEWS CONSORTIUM)

You might not be surprised to learn that the U.S. dollar is one of the world's most widely used currencies, but there are other less-familiar currencies used around the globe. The list of the top 10 might surprise you. We were surprised to see the last two currencies ... continue reading


Crossings Tea releases unique Chinese tea

Image of Crossings Tea, grown in the remote heartland of China.

By John W. Smagula

Crossings Tea announces the release of its Chinese black, green, and jasmine tea. From the remote Three Gorges region of Central China, Crossings Tea has pure and refined flavors that capture the essence of classical Chinese tea. The company supports the local Yichang ... continue reading


OPEC price war increases; Brent Oil hits new low Watch

Image of Crude prices have plunged since the Organization of Petroleum Exporting Countries, or OPEC agreed this November to leave its production quotas unchanged at 30 million per day.

By Catholic Online (NEWS CONSORTIUM)

Hard as it may seem, not everyone is welcoming low prices at the gas pump. Brent crude plunged below $57 per barrel this week. The event marked a new five-and-a-half-year low while traders wager that the global oversupply of oil will continue deep into 2015. ... continue reading


In a bid to 'get rid of gasoline' Toyota makes history with first hydrogen-powered retail car - Coming to a dealer near you in 2015! Watch

Image of The Myrai will be the first hydrogen fuel cell-powered car you can buy, starting in 2015.

By Catholic Online (NEWS CONSORTIUM)

Toyota is making automotive history by selling a car powered by hydrogen. Sales in Japan began on Dec. 15, and will begin in the USA in 2015. Running off electricity created by hydrogen fuel cells and emitting only water, the car could revolutionize driving as well as ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Hebrews 9:15, 24-28
15 This makes him the mediator of a new covenant, so ... Read More

Psalm, Psalms 98:1, 2-3, 3-4, 5-6
1 [Psalm] Sing a new song to Yahweh, for he has ... Read More

Gospel, Mark 3:22-30
22 The scribes who had come down from Jerusalem were ... Read More

Saint of the Day

Saint of the Day for January 26th, 2015 Image

St. Timothy
January 26: Born at Lystra, Lycaenia, Timothy was the son of a Greek father ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter