Kellogg's CEO Explains The Battle Against 'Cereal Slowdown'

Kellogg Company K has been the undisputed king when it comes to breakfast cereals for decades. However, the company, like other cereal manufacturers, is witnessing a slowdown.

John Bryant, Kellogg CEO, was on CNBC Tuesday to discuss how he is battling the slowdown.

Lots Of Growth Potential

"We are excited about growth potential in cereal," Bryant said. "The great news is cereal is a low calorie, nutrient dense food form. People who eat cereal for breakfast tend to have a lower body mass index than people who don't.

"The benefits of the milk with cereal gives you the protein, the calcium, the Vitamin D, and 45 percent of all the milk consumed by kids in the U.S. is through cereal consumption. And the great thing about cereal is it's incredibly versatile and convenient."

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He continued, "So, now in the U.S., one in three bowls of cereal are consumed outside the breakfast occasion. So, adults are snacking on the cereal in the evening, kids are snacking on cereal after school. So, a lot of growth potential through the convenience and the versatility of the food."

Softness

Bryant was asked about the softness seen in the cereal market overall. He replied, "So it's been soft last several years. The cereal category is down 4–5 percent last year. It grew through the 2000s 3–4 percent a year for us, but last four to five years we have some headwinds, such as gluten-free, protein seeking. That's why you are seeing us innovate and change our portfolio to be more attractive."