The soft cereal consumption in the US and the competitive landscape in the kid foods category has taken Kellogg’s morning foods sales down a notch.
According to Kellogg’s Q1 financial results this year, its morning foods segment posted an organic net sales of $691m, declining by 2.4% from last year’s $708m.
This prompted the cereal giant to innovate its Froot Loops brand shortly after launching Chocolate Frosted Flakes, which has been well received, said Steven Cahillane, Kellogg’s CEO.
More innovation for morning foods
The company reported the segment’s net sales are declining at a decelerated rate as it makes progress in stabilizing its core health and wellness brands, including Special K.
“Similarly, Mini-Wheats, Raisin Bran and Rice Krispies all started to improve their trends in the [Q1] quarter, as we renewed communication about their key wellness attributes,” Cahillane said.
But he noted Kellogg has more work to do to revitalize its breakfast cereal business.
“We are launching bagged formats for certain brands in this segment, seeking to widen our consumer base,” said Cahillane.
“Pop-Tarts, too, will benefit from innovation and brand support as we head into the second half [of 2018].
“For morning foods this year, it’s all about getting back to basic… We still expect to see profit pressured by increased investment this year, but with a continued moderation in sales decline as we work towards stabilizing this business,” he added.
Kellogg's Froot Loops contain a mix of red, blue and green loops, and purple star-shaped cereal pieces, delivering “tangy and sweet berry flavors,” said Kellogg and is available across the US for a SRP of between $4.69 and $5.79.
Teresa Lindsey-Houston, senior marketing director at Kellogg’s morning foods division, said the new cereal is collaborating with London-based fashion brand, AWAYTOMARS, to design a line of wild berry Froot Loops-inspired dresses.