In the 52 weeks ended Nov. 5, Post Holdings' dollar sales totaled $1,630,019,072.
Positives for Post
Of the “Big 3” cereal companies, only Post Holdings, Inc., St. Louis, managed to post a year-over-year increase in dollar sales, according to I.R.I. In the 52 weeks ended Nov. 5, dollar sales totaled $1,630,019,072, up 0.14% from the same period a year ago.
Speaking on the state of the R.-T.-E. cereal category during a Nov. 17 conference call, Robert Vitale, president and chief executive officer of Post Holdings, said he believes the rate of decline in the segment is overstated as non-measured channels are growing.
Bringing Post Foods and MOM Brands together has resulted in cost reduction for Post.
“The adult subsegment remains the weakest in North American cereal,” Mr. Vitale said. “Older consumers are seeking breakfast alternatives with more protein. Other segments of our business benefit from this trend.”
Digging deeper into the company’s cereal business, Mr. Vitale said Post sees “a more intense competitive environment” heading into 2018 than it experienced in 2017. He said the additional competition in the bagged cereal segment brings both positives and negatives to the table.
“We tend to see some velocity reduction,” he explained. “However, the entry of additional competitors into the segment also validates the perceived product quality of the packaging and, generally, has led to expansion of the bag segment, which we tend to be, in that, a winner in.”