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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Big name companies demand Planned Parenthood to remove names off list of corporate donors Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Representatives from Coca-Cola, Ford Motor Co. and Xerox openly state they've requested Planned Parenthood to take their company's names out as corporate donors to the controversial organization. MUNTINLUPA, PHILIPPINES (Catholic Online) - Planned Parenthood is now ... continue reading


Gun sales in the United States dramatically boost after massacre shootings Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

FBI's latest background check data shows the gun industry spiked in sales at about 11 percent last June. There are about 1.53 million background checks done, making it the busiest June ever since the agency started keeping track in 1999, according to CNN. The massive ... continue reading


Microsoft slammed for thousands of layoffs while demanding increase in immigration Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

About 7,800 Microsoft employees are in line to be fired, according to a company announcement last Wednesday. Most workers are from the seemingly failing mobile phone business, while Microsfot is said to fire a majority of Nokia's remaining employees ever since ... continue reading


Subway and Jared break up after controversial police raid at spokesman's home Watch

Image of Jared Fogle is known for his massive weight loss on a

By Nikky Andres (NEWS CONSORTIUM)

Subway spokesman, Jared Fogle's house was raided by FBI agents and Indiana State Police, two months after the former executive director of Fogle's foundation was arrested with charges of child pornography. MUNTINLUPA, PHILIPPINES (Catholic Online) - In their statement, ... continue reading


'Enough with all the rules' firework industry calls out to Obama Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

This year, more states have allowed people to buy pyrotechnic materials, such as sparklers and Roman Candles. In fact, this year has been wonderful for fireworks manufacturers, since the projected 2015 sales of celebratory explosives are estimated to top $1 billion. ... continue reading


Whole Foods accused of greatly overcharging customers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Whole Foods, the American foods supermarket chain that specializes in organic goods, has been accused of massive overcharging. The New York City Department of Consumer Affairs explained they have discovered "systematic overcharging for pre-packaged foods" at the city's ... continue reading


Strange and powerful 'boat swallowing' vortex appears in Lake Texoma Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A strange, giant vortex, estimated to be around 8-feet in diameter, has appeared in Lake Texoma. This occurrence is surprising and perhaps threatening. However, there is an explanation. MUNTUNLUPA, PHILIPPINES (Catholic Online) - Lake Texoma is known as one of the ... continue reading


Is it time to stash money under mattress? 'It's time to hold physical cash,' fund manager says Watch

Image of Ian Spreadbury declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.

By Catholic Online (NEWS CONSORTIUM)

Is it time to cash your paycheck and then stick it into a hatbox for a rainy day? According to British fund manager Ian Spreadbury, who invests more than £4 billion of investors' money is gravely concerned that a "systemic event" could rock markets. The upset ... continue reading


In spite of strong showing, Ron Paul predicts Apocalypse on Wall Street Watch

Image of Ron Paul has predicted economic doomsday previously. As stocks continue to make new highs, he remains just as convicted as ever that there

By Catholic Online (NEWS CONSORTIUM)

Things seem to be on an even keel right now but according to former Representative Ron Paul, the Federal Reserve's easy money policies have left stocks and bonds are on the verge of a massive collapse. LOS ANGELES, CA (Catholic Online) - "I am utterly amazed at ... continue reading


The U.S. public is asked - Which woman do YOU want to see on the new $10 bill? Watch

Image of The new $10 bill will also include a

By Catholic Online (NEWS CONSORTIUM)

It's a question being posed to the American public... which American woman do they want to see on the new $10 bill? The revamped $10 bill will go into effect in the year 2020. U.S. Treasury Secretary Jack Lew wants the next generation of U.S. currency to ... 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, Exodus 33:7-11; 34:5-9, 28
7 Moses used to take the Tent and pitch it outside ... Read More

Psalm, Psalms 103:6-7, 8-9, 10-11, 12-13
6 Yahweh acts with uprightness, with justice to all ... Read More

Gospel, Matthew 13:35-43
35 This was to fulfil what was spoken by the prophet: ... Read More

Saint of the Day

Saint of the Day for July 28th, 2015 Image

St. Innocent I
July 28: Innocent was born at Albano, Italy. He became Pope, succeeding ... 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