New model not working

I honestly believe the buyers remorse is setting in. Qtr 2 numbers flat even with double dip deliveries to both stores and warehouses. I honestly expected much stronger snack numbers but they were flat. I'm sure that made K leadership hearts skip a beat when they got those underwhelming numbers. Snacks flat & cereal down. Not a positive beginning to their new model. Let's be honest: this company will be in trouble in one year. I don't care what Kool-aid the Acct teams and managers are espousing now. You CAN NOT replace the daily attention, in store, the DSD model afforded you. Sales will not increase under this new fantasy model. Just saying to the new snak/Walmart reps that your budgets are increased by x% without any plan from K leadership is very disconcerting. I had a plan for every store I walked into. I guess it's a mute point anyways. The new snak/Walmart reps will be gone in 16 months. Then onto outsourcing in store representation and that mess. Kelloggs should have sold Snacks before they allowed Snaks to wither on the vine. Well I guess future food marketing grads will read about how hubris on the part of Kelloggs leadership ruined a company. But by that time our current Leadership team will have left with their stock options cashed out and golden parachutes fully deployed. Onto ruining another viable company. Repeat ad nauseum.

Sad.

Posted by @OPBo7lr-1cen. Completely on point. If there is no change in leadership, and we need a positive one, Kellogg is going down.

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Very well put.

I could be wrong about 2nd qtr numbers but that is what understood from K's presser. And from a Mgr. Let's be realistic here, Eanie-Day does not want the huge costs associated with a DSD sales force. That's fine but along with that action will be a reaction: reduced sales. If Kelloggs leadership thinks sales will now increase without DSD controlling the sales, orders, inventory and merchandising on almost a daily basis in a store then K leadership truly have NO idea what is going on at store level. Call the termination of DSD for what it is: a salary dump purely motivated by P&L pressures. To say this is motivated by online purchasing trends is ludicrous. I live outside a major metropolitan city and I don't see the online Grocer delivery trucks clogging the roads nor do I see many of the store online employee shoppers. DSD was the easiest target to attack and had NO advocates or champions to save it. We all know the account teams coukd -hit the bed and still keep their jobs (Acme). But now the account teams are the low hanging fruit and if sales slip significantly, they along with new snak reps will be hit next. Then starts the death spiral.

Once again, you can't run a sales organization thru reports behind a desk.

I could not agree more with your comments. I cannot believe the big guns in the US have not taken an indepth look at the higher level management teams across Europe, which are being 'lead' so badly, but like you expressed Golden handshakes all around.

Are u sure second qt numbers were flat

Thread regarding Kellogg layoffs

New model not working

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