Cereal Goes Cold

Sales for the breakfast cereal giant Kellogg were down eight percent last quarter -- the seventh straight decline for the company.

Some reasons for the decline include changing tastes of the American public and a move to healthier food options. Gone are the days of sitting down to a bowl of cold cereal and milk. More people are cooking hot breakfasts at home, or taking grab-and-go items like toaster pancakes and Greek yogurt with them during hurried mornings.

Kellogg hasn't been keeping up with changes in the market as well as its competitors General Mills and Post Holdings. All three companies are suffering but the other two are suffering half as much as Kellogg -- or less.

What's Next?

Kellogg made a name for itself by creating the corn flake as a breakfast alternative during the 19th century.

At the turn of the century, they revamped Special K and marketed it to the dieting crowd. They then acquired Kashi.

Problems erupted in 2008, when the company cut too many costs and suffered an Eggo shortage. That was followed by a series of unfortunate and costly mishaps at their plants.

Since then, Kellogg has put new leadership in place, but some of 13-year Kellogg employee John Bryant's choices have been puzzling. He's opted to cut the workforce by seven percent; move Kashi to Battle Creek then back to La Jolla where it began; and introduce a gluten-free Special K, only to hammer home a new flavor of sugary Pop-Tarts.

Kellogg has 15 GMO-free cereals on the market, but the company is throwing $1.4 million to defeat proposed labeling bills.

Bryant is pinning the company's future on new breakfast cereals yet to be introduced, like Raisin Bran with cranberries.

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