Kellogg has struggled to make its cereals and snacks more appealing to Americans who are increasingly seeking to avoid processed food. Its revenue has fallen every year since 2013
Kellogg's CEO is retiring and will be succeeded by an executive from a vitamin and protein bar company, as packaged food makers try to keep customers who are looking for healthier products.
The maker of Frosted Flakes, Pop-Tarts and Eggo waffles said “Chief Executive John Bryant will be replaced by Steven Cahillane, an executive from The Nature's Bounty Co”.
Cahillane will start as CEO next week and will join the company's board. Bryant, 51, will remain executive chairman of the board until March, when Cahillane will take over that role. Cahillane, 52, has also worked at Soda Company Coca-Cola Co. and beer maker AB InBev.
Kellogg has struggled to make its cereals and snacks more appealing to Americans who are increasingly seeking to avoid processed food. Its revenue has fallen every year since 2013.
John Bryant said “Cahillane's experience at Nature's Bounty would help Kellogg adjust to consumers' demand for healthier food, but that it wouldn't apply to all of Kellogg's products. I think in our cereal business, health and wellness is important. The snacks business is more about indulgence and taste. The Kellogg Company was founded on health and wellness, so it's not a new move for us. It's a continuation of that belief the company has in delivering products that help people live a healthier and happier life."
Packaged food conglomerates have been trying to appeal more to consumers who favour fresher foods, smaller, local brands and are worried about the ingredients they eat.
Bryant would not say whether Kellogg had plans to cut jobs or drop certain lagging brands.