Kellogg Hopes New Product Introduction Will Boost Drooping Sales

Beset by wilting sales and lackluster financial performance, Kellogg Co. hopes to increase its lead over number two breakfast cereals producer General Mills with the introduction in the U.S. of a cereal sold for 30 years in the U.K. To be launched in January, Crunchy Nut with its “unique honey and nut flavor” gives the company a much-needed new product introduction without having to spend on research and development, according to analysts. The $6 billion cold cereals market has been depressed of late: dollar sales declined 2.68 percent in the 12 months ending in October, unit sales were off .22 percent, and the average box price dipped below $3.00. Kellogg still has 33 percent of the market, but General Mills isn’t far behind (31 percent) and is gaining share as Kellogg loses.