Kellogg 3Q Profit Rises On Strong Brand Loyalty

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Consumers' devotion to their favorite cereal and snack brands and a continued consumer focus on eating at home helped boost Kellogg Co.'s profit 6 percent in the third quarter.

Shoppers have stayed true to the food maker's brand-name products during the economic downturn, particularly in North America where cereal and snack food sales continued to grow. Its products — such as Rice Krispies and Special K cereal — are seen by many as a cheap meal and continue to be helped by more consumers eating at home to save money.

Kellogg, based in Battle Creek, Mich., reported Thursday that its revenue was nearly flat at $3.28 billion, due in part to the effect of the fluctuating value of the dollar during quarter.

Kellogg's CEO David Mackay said the tough economy has placed significant pressure on consumers, but he said the company said it has used the conditions as an opportunity to grow — emphasizing the affordability of its foods for shoppers and investing in advertising at lower costs than normal.

This is on top of long-term productivity improvements and other cost reductions at the company that have helped boost its profit for several quarters.