Kellogg to Cut Work Force by 7%, and That's Not All

Kellogg to cut 7 pct of workforce by 2017, profit rises 3 pct

Dive Brief:

• Kellogg Company announced its third-quarters earnings results on Monday, and the news came accompanied by word that it will eliminate 7% of its workforce by 2017.
• The company saw a 3% rise in quarterly profits as net income for the quarter hit $326 million (90 cents per share), up from $318 million in the same quarter last year.
• Kellogg also announced a new "global growth and efficiency program" called Project K, meant to bolster its business ventures at home while seeking out opportunities for growth in markets abroad.

Dive Insight:

We all know that Kellogg is in a tough spot right now, as interest in cold cereal has been withering and breakfast habits in general have drifted toward other products. Still, the company saw production costs for cereal go down, and it's placing a great deal of hope in snack foods like Pringles.

Nov 4 (Reuters) - Kellogg Co reported a 3 percent rise in quarterly profit, helped by a fall in cereal-making costs, and said it would slash 7 percent of its workforce by 2017.

The company's shares rose 1 percent in premarket trading.

Net income of the world's largest cereal manufacturer rose to $326 million, or 90 cents per share, in the third quarter ended Sept. 28 from $318 million, or 89 cents per share, a year earlier.

The maker of Corn Flakes, Chocos cereal and Eggo waffles said revenue fell marginally to $3.72 billion.

Kellogg announced a new cost-cutting program called Project K to strengthen existing businesses in its core domestic markets and increase growth in developing markets.

The program is expected to result in total pre-tax charges of between $1.2 billion and $1.4 billion, the company said.

$4.2B gluten-free food market only expected to keep growing

$4.2B gluten-free

food market only expected to keep growing

(Article written by Roger Riddell for Fooddive.com, original article can be found here)

Dive Summary:

• Packaged Facts reports that gluten-free food sales reached $4.2 billion last year, with the market forecast to top $6.6 billion in 2017.
• Gluten-free foods have become popular due to some consumers' belief that they can't tolerate the protein, which is found in foods processed with grains, and parents who say gluten is harmful to children with autism, though NPD Group senior analyst Harry Balzer expects interest in the category to fade eventually.
• Food giants like Mondelez International, General Mills and Kellogg's all offer gluten-free foods, and restaurants like Domino's Pizza are also beginning to cash in on the latest health interest.

From the article:
... A recent survey released by NPD Group found that 29% of U.S. adults say they want to either cut back or eliminate gluten from their diets, an increase from 24% in 2009. However, NPD senior analyst Harry Balzer tells MSN Money he expects interest in the category to fade, though he isn't sure when.
"This is the health issue of the day," he said, adding that his research doesn't delve into why people want to buy gluten-free goods. ...

READ THE FULL ARTICLE FROM MSN.COM HERE