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Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

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'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

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The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
RetailKellanova

Kellogg wants to make a Netflix for snacks

By
Claire Groden
Claire Groden
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By
Claire Groden
Claire Groden
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June 9, 2015, 12:35 PM ET
Kellogg's Earnings Beats Expectations
Boxes of Kellogg's Frosted Flakes cereal are seen displayed inside a Wal-Mart store July 28, 2003 in Rolling Meadows, Illinois.Photograph by Tim Boyle — Getty Images
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Subscription snack services — which deliver customized snack boxes to people at home or work weekly or monthly — have boomed in recent years as start-ups offer a whole range of options. There’s Mouth, which sends subscribers what it calls “indie food,” Nature Box, which offers snacks free of artificial ingredients, and even the sports nutrition-focused Jacked Pack.

But there’s a new company entering the market, and its not a hip start-up. It’s Kellogg, the company you probably know for its Pop-Tarts and Eggos. According to Bloomberg, the food company, which has suffered from lagging sales across its cereal brands, plans to start its own snack subscription service to appeal to customers seeking healthier food.

Kellogg’s move comes on the heels of its competitor, General Mills, trying its own snack subscription service called Nibblr. After a year and a half, General Mills closed the experiment, telling Bloomberg that the project “provided great learning.” Nibblr sent subscribers weekly portion-controlled snacks, choosing the varieties by having customers give feedback on the products — a model much like Pandora or Netflix.

 

 

Even though General Mills has exited the space, there’s certainly no lack of competition or opportunity awaiting Kellogg. According to a report by market research firm Mintel, the snack subscription provider Graze, for example, enrolls a new batch of 1,000 customers every day. One thing we can probably bet on? The snack subscription won’t be featuring any Pop-Tarts.

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