As consumers increasingly turn to gluten free and low carbohydrate
breakfast options, Kellogg's, the world's #1 cereal
producer, has seen its earnings growth slow. The 100-year-old brand is fighting
for relevance in a world where cereal-and its nutritional value-are being
viewed quite differently than in the past.
Kellogg's, however, appears to be confronting this significant
challenge head on. In an effort to increase its relevance among health-conscious
consumers, Kellogg's has invested heavily to spur innovation and product
enhancements. In late 2013, the company also announced the Project K restructure, a plan to reduce staff by 7 percent
by 2017 and reinvest the cost savings into some of its struggling products. Project
K seems to indicate that by improving operational efficiencies, Kellogg's hopes
to be better able to compete on a global scale.
Kellogg's has also demonstrated its firm commitment to corporate
culture with the "K
Power to Grow" initiative, which supports employee growth and
development. Working Mother, Diversity INC, and the Ethisphere
Institute have all applauded Kellogg's stance on various social issues.
Kellogg's is also leveraging its brand loyalty to educate the world on
the importance of a good breakfast with consumer-centric initiatives across a
wide range of touchpoints including digital, packaging, and cause-related
"Breakfast for Better Days," which promises to deliver 1 billion servings
of cereals and snacks until the end of 2016 to support global hunger relief. If
Kellogg's can succeed in boosting the global breakfast profile and meeting the
needs of health conscious consumers, it can restore its growth to good health.