This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kellogg Gets A Boost From Pringles In 3Q


NEW YORK (AP) â¿¿ Kellogg's appetite for salty snacks is helping fatten its profits.

The world's biggest cereal maker â¿¿ best known for its Frosted Flakes, Pop-Tarts and Eggo waffles â¿¿ says its recent acquisition of Pringles chips boosted its net income in the third quarter. Kellogg Co., based in Battle Creek, Mich., bought the brand earlier this year in hopes of becoming a global player in the salty snacks market. The deal instantly made Kellogg the world's second-biggest salty snack food maker, behind only PepsiCo Inc.'s Frito-Lay.

In the U.S., the company said Pringles sales rose by 10 percent in the quarter.

A big part of that growth was driven by improved displays in supermarkets and expanded distribution in dollar stores, drugstores and other channels, CEO John Bryant said in an interview with the Associated Press. He noted that Pringles' profile wasn't being optimized under its previous owner, Procter & Gamble Co., the maker of consumer products that exited the food business.

As for keeping pace with Frito-Lay in terms of new products and flavors, Bryant said Kellogg will be limited in the near term because Pringles only has two major manufacturing plants in the world. Those plants â¿¿ in Tennessee and Belgium â¿¿ are already running around the clock. As a result, he said the company will focus on improving production capacity at the plants, rather than focusing on new products. An expansion of production capacity could come in another year or two, he said.

Since Pringles gets two-thirds of its revenue from overseas, Kellogg is also hoping Pringles can give it inroads into the emerging markets where the ranks of people with disposable income are growing. The company's stable of other salty snacks include Cheez-Its and Special K crackers.

For its flagship U.S. breakfast foods unit, the company said net sales rose 5 percent, with new products such as a chocolate-filled cereal called Krave helping it gain market share in both cereals and breakfast pastries. Like Special K with berries, the cereal was first introduced in France, where Bryant said customers' taste expectations are higher.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs