BATTLE CREEK, MICH. – While the Kellogg brand may be synonymous with breakfast cereal, the company has made significant strides in building a global snack-centric business. The foundation of that business rests on four brands — Pringles, Cheez-It, Pop Tarts and Rice Krispies.
During a Feb. 23 presentation at the Consumer Analyst Group of New York virtual conference, Steven A. Cahillane, chairman, chief executive officer and president, said snack sales in developed markets make up over 40% of the company’s net sales and he expects it to grow at a low single-digit rate over time.
In the United States, Pringles has sales of approximately $900 million and has been growing at double digits the past few years, according to the company.
“This is not by accident,” Mr. Cahillane said. “It’s a beloved brand with unique food and packaging. And we’ve done a great job with innovation like our new Scorching line with the expansion of pack formats like multipacks, and effective advertising like the commercial you undoubtedly saw during the Super Bowl.”
The Cheez-It brand has more than $1 billion in sales and a track record for growth, said Mr. Cahillane.
“We launched a new platform in Cheez-It Snap a couple of years ago and ran out of capacity in the first year — Something that just never happens,” he said. “And recently, we launched Cheez-It Puft.”
The Cheez-It brand was introduced in Canada a few years ago and Kellogg Co. plans to expand it to other international developed markets in the coming years.
With US retail sales over $800 million, Pop-Tarts has taken a leadership position in the portable wholesome snacks category, according to the company.
“It’s another differentiated brand that responds well to our brand building and innovation and it is a brand that can be expanded internationally,” Mr. Cahillane said.
While smaller than the other three brands at $350 million in sales, Rice Krispies is a brand with a runway for growth internationally.
“And there are so many other great brands in our snacking portfolio from Nutri-Grain, RX and Special K bars to cracker brands like Club and Town House,” Mr. Cahillane said. “So, when you put it all together, the single biggest portion of our portfolio, developed market snacks, has every capability of sustaining or exceeding its long-term growth target.”