Kellogg’s Sales Are Being Revived Not by Cereal, But Pringles Chips
The chips helped Kellogg’s sales rise 4.7% to $3.4 billion this past quarter, Kellogg’s said, according to the Wall Street Journal. Frozen foods and other snacks like protein-packed RXBARs, which came from a startup Kellogg’s acquired last year for $600 million, also contributed.
Kellogg’s cereal brands, on the other hand, have fallen off in recent years due to new trends in healthier snacking. Even the health-conscious Special K brand struggled, though its begun to make up ground, CEO Steve Cahillane said, according to the Journal.
“We still have work to do…but we are firmly on the right track,” Cahillane added.
Overall, sales on a comparable basis rose 0.6% last quarter, Kellogg’s best result for several quarters now. Subsequently, the company’s shares rose 4.1% in premarket trading Thursday.
Kellogg’s, which makes additional iconic brands such as Frosted Flakes, Rice Krispies, Pop-Tarts and Cheez-Its, is also expanding into western portions of Africa. The company this week increased its investment in a Nigerian packaged food company, the Journal reported.
“Expansion in emerging markets is an important element of our growth strategy,” Cahillane said.