2019 Could Be Crunch Time for Kellogg’s
Way back in 2018, Kellogg’s announced that its structure would be refurbished to enable it to win the marketplace and bring top-line growth. So what can consumers expect from our Keebler friends in 2019?
- Green: Kellogg’s is working toward 100% reusable, recyclable, compostable packaging by the end of 2025. In Europe, the company has already begun a project to move its cereal bags to a recycle-ready material by late 2019—removing an anticipated 480 tons of non-recyclable packaging from its supply chain each year.
- Growth: Kellogg’s will invest in areas of business with the highest growth potential. This is central to its “Shape a Growth Portfolio,” a key component of Kellogg’s growth strategy.
- Sales: Kellogg’s is exploring the sale of its cookies business (Keebler, Famous Amos, Mother’s and Murray brands) and fruit snacks (including Stretch Island brand). The products have had difficulty competing for resources and investments within the portfolio.
- Reduced Complexity, Increased Responsiveness: Kellogg’s will consolidate its categories, its supply networks, combine its sales teams, and invest in new e-commerce capabilities to improve customer focus and end-to-end supply chain including procurement, manufacturing, logistics, and customer service to increase scale, enhance capability, and ensure delivery.
Is this the right move for Kellogg’s—banking on growing areas rather than areas of nostalgia? Will the Keebler elves have to move out of their tree house to new digs? 2019 will tell.
- SOURCE: Kellogg Company Press Release
- BRANDS: Kellog’s
- WHY you should care: because the keebler elves could be looking for a new crib