Business Wars Cereal Wars - Going Soggy | 6
Jul 31, 2019
In the year 2000, Kellogg's finds itself dethroned by General Mills, bringing new CEO Carlos Gutierrez into action. The battle for top cereal maker escalates as consumer habits shift towards convenient breakfasts. Amid this, Kellogg's pivots by acquiring health brand Kashi and exploring new market territories like Keebler Foods. Interestingly, sugary cereals like Lucky Charms still attract lovers of indulgence, showcasing the tension between health trends and consumer cravings. Cereal companies face the challenge of reformulating beloved classics without losing their essence.
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Kellogg's Demolition
- In March 2000, Kellogg's demolished its south plant, the original factory built in 1907.
- This symbolized the end of an era for the company, which was struggling with declining sales and a loss of market leadership.
Shifting Focus to Profit
- Kellogg's shifted its focus from quantity sold to profit earned under CEO Carlos Gutierrez.
- This change in perspective prioritized high-margin products for the company's recovery.
Kashi Acquisition
- Gutierrez recognized the growth potential of natural cereals and acquired Kashi in June 2000.
- This acquisition aimed to appeal to health-conscious consumers and counter General Mills' unsuccessful organic cereal launch.