KELLOGG JOINS IN PRICE WAR.Byline: Barnaby J. Feder The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times The Kellogg Co. wheeled out the heavy artillery See: field artillery. in the cereal war Monday, announcing price cuts averaging 19 percent on Frosted Flakes “Frosties” redirects here. For the cola-flavored hard candy, see Frosties (candy). Frosted Flakes (North American countries) or Frosties (UK, Commonwealth of Nations and EU countries) is a cereal similar to Corn Flakes from Kellogg's, but coated with , Raisin Bran Noun 1. raisin bran - bran flakes with raisins cold cereal, dry cereal - a cereal that is not heated before serving and 14 other cereals, representing two-thirds of its domestic cereal sales. Kellogg's move came after scanner data from supermarket checkout lines warned the company that its industry-leading market share was eroding rapidly in the face of across-the-board 20 percent price cuts announced earlier this spring by Post and Nabisco cereals, the subsidiary of the Philip Morris Cos. that ranks third in the industry after Kellogg and General Mills  This article or section may contain a proseline.Please help [ convert this timeline] into prose or, if necessary, a . Inc. ``We had been planning to make these reductions by year end but decided to move them up,'' said Arnold G. Langbo, chairman and chief executive of Kellogg, which is based in Battle Creek Battle Creek, city (1990 pop. 53,540), Calhoun co., S Mich., at the confluence of the Kalamazoo and Battle Creek rivers; settled 1831, inc. as a city 1859. It is an agricultural trade center known for its cereals. , Mich. Kellogg warned Wall Street that the price cuts would sharply reduce earnings per share in the quarter ending this month and make it unlikely that profits for the whole year would exceed 1995. Kellogg's shares, in turn, fell $2.875, to close at $72 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . While the cuts did not apply to such popular brands as Kellogg's Corn Flakes, Special K, Rice Krispies and Crispix, they are expected to slice about $350 million off revenues this year. Analysts said that Kellogg's price cuts would put pressure on General Mills, the Quaker Oats Co. and Ralcorp Holdings Inc. to make price reductions of their own, although not necessarily as broad or deep. Ralcorp, which makes Chex cereals and is the leading manufacturer of cereals sold under store labels, has already been hurt by the contraction of the gap between the major-branded cereals and its private-label business. It announced plans Monday to lay off 100 workers as part of an effort to reduce its annual costs by at least $25 million. CAPTION(S): Photo, 3 Charts Photo: (Color) A shopper pushes his grocery cartpast the cereal shelves of a Detroit supermarket, after Kellogg Co. announced price cuts averaging 19 percent on popular brands like Frosted Flakes. Associated Press Chart: (1-3--Color) Cereal price wars Cereal companies combined for $7.9 billion in sales at U.S. supermarkets in the 52-week period ended April 21. Associated Press |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion