Kellogg lacked momentum, innovation in 2009-'10, but is back on track, says CEO; company expects to generate US$800M in new product sales in 2012
September 11, 2011
– Kellogg Co. CEO John Bryant said at a consumer conference last week that the company had suffered from a lack of momentum and innovation in 2009-10, FoodNavigator-USA reported Sep. 9.
A new innovation platform is expected to help curb the effects of anticipated 2012 inflation. Kellogg this year plans to launch products expected to result in US$800 million in new sales.
Although Kellogg continues to struggle in the UK and Australian markets, the company is witnessing gains in the U.S. in the cereals and cookies and crackers categories, with particular growth in Special K cracker chips and Crunchy Nut.
By 2012, the company wants to be back on track with its goal of earning 15% of sales from products launched within the past three years, the publication stated.
Following a 2009 recall for a peanut salmonella outbreak and a 2010 recall of compromised-flavor cereals, Kellogg has made extensive changes to its supply chain, including increased auditing and testing of suppliers.
Kellogg said it would focus investments on brand building via marketing rather than trade spending.
The primary source of this article is FoodNavigator-USA, Montpellier, France, on Sep. 9, 2011.