This is the beginning to the end. What will happen is upper management and the CEO will get fired in a year or two. Then they will hire a new CEO to fix the damage, but it will be to late. The damage will be done and un reversible. So at the end of the day they will be sold or they will sell the Keebler side of company. There is proof that getting rid of the sales force doesn't work. Look at the cereal side of the business. They got rid of them and sales dropped and haven't been back since and that is 75% of Kelloggs. They haven't learned. Sales on the snack side will eventually drop 20-30%. So maybe you should hang onto your stocks. When they are sold. There should be a good bump up in the stock price. I am actually going to buy in this year, after a couple of bad stock reports come out, later this year.
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When they promised new, better, and reformulated Special K bars, I was expecting healthier. When I compared the old chocolate pretzel bars to the new "reformulated" bars, the new bars contained A LOT more sodium and sugar. No wonder our cereal bars are down by double digits. Healthy bars like Larabars and Kind are where its at, not the Special-Krap bars we have now
What stores have you seen these lists of reductions at?
I disagree with the 20-30%. That was was with Cereal reps who do no ordering, merchandising and very little visibility in stores.
When we (dsd) leaves I expect the drop to be minimum 30% probably much more. The linear footage will be drastically cut. SKU rationalization. I assume Kelloggs knows that or they are completely clueless.
I have/had hutches, shippers & seasonal displays all over my stores. When I leave that will be gone.
Been saying this all along. Their just dumping their dept load to make it look good. Competition is jumping all over our space and stores don't want to spend more on labor to put OUR products on THEIR shelves!. Bye bye Kellogg!
If the Keebler side is sold, I hope Nabisco, Mondelez buys them. Then I'll go back to buying some Keebler cookies, but until then, no Kelloggs/Keebler/Pringles/Famous Amos/Rice Krispies Treats/Cheez-It's/Club/Townhouse and all their crap is boycotted in our home!!!
My stores are already making a list of products to eliminate. 20-30% might be to low. I saw the list. It's a lot. More like 40-50% eventually. They should have sold Keebler. We had a good quarter last guarter. That's when u sell. You will get 10's of millions more. The CEO isn't bright. He doesn't know the logistics of the business. He's a numbers guy. It works to a certain point. He's gone too far with it.
Consumer tastes have changed dramatically. Mostly due to the fact that this company like many other food giants, sells crap, consumption of which leads to health issues. Not just this company, but most food companies that sell packaged food requiring preservatives and petroleum-derived chemicals. Why would you want that crap in your bodies? We want our food to heal us, not harm us. More food giant mergers later, until finally, more of us realize that we need to change the way we eat, then it's game over all around. Bye bye, Pepsico, Coca Cola, KraftHeinz, Unilever, Mondelez, etc...