Sales in the company\'s US snacks business - its biggest fell 1.5 per cent, while sales in its US morning foods business, which includes cereals, fell 2.6 per cent.
Kellogg's Co, the maker of Corn Flakes and Cheez- It crackers, a bigger-than-expected drop in quarterly net sales on Tuesday as demand for its snacks and cereals remained weak in the United States, reported Reuters.
Sales in the company's US snacks business - its biggest fell 1.5 per cent, while sales in its US morning foods business, which includes cereals, fell 2.6 per cent.
Sales in both businesses fell for the third straight quarter, while total net sales posted their eighth decline in nine quarters.
Kellogg's, like other processed food makers, has been working to make its products more attractive to consumers, who are becoming increasingly conscious of what goes into their food and where it comes from.
The company is using savings from a cost-cutting program to refresh its Special K brand and launch healthier products such as granola and muesli in new markets.
Kellogg's, whose shares were down 3.3 per cent in premarket trading, has also said it will stop using artificial colours and flavours in its products by the end of 2018 and use only cage-free eggs in the United States from 2025.
Battle Creek, Michigan-based Kellogg's has also been trying to expand its snack foods business and increase its international presence through acquisitions.
The company bought two Egyptian companies i.e. baker Bisco Misr and cereal maker Mass Food Group, earlier this year and entered into a distribution deal to expand in Africa.
"More radical innovation in cereal - organic or via M&A- in the US will be needed and the company's goal to 'win in breakfast, beyond the bowl' may force them to make acquisitions outside their current categories," Susquehanna analyst Pablo Zuanic wrote in a research note.
A strong dollar reduced the value of sales in Latin America and Asia Pacific in the third quarter ended on 3rd October. Total net sales fell 8.5 per cent to $3.33 billion.
Net income attributable to the company fell 8.5 per cent to $205 million or 58 cents per share, in the quarter.
Excluding items, the company earned 85 cents per share. Analysts on average had expected earnings of 84 cents per share on revenue of $3.42 billion.