Cereal and snack manufacturer Kellogg yesterday acknowledged rival General Mills as the new market leader in US cereals, admitting that it had been relegated to second place.
Kellogg has for a long time claimed that it shifted more volume than General Mills, giving it a greater market share, even though GM had overtaken it monetarily in terms of cereal sales.
However, speaking yesterday to the annual conference of the Consumer Analysts Group of New York, Kellogg chief executive Carlos Guttierrez announced that the company is to change its measurement of market share to dollars, not volume, conceding a clear lead to General Mills.
“That is a small price to pay,” insisted Guttierez, who is seeking to increase the profitability of Kellogg’s divisions and reduce the group’s reliance on cereals – hence last year’s purchase of cookie company Keebler [WAMN: 27-Oct-01]. “I hope what you see,” he continued, “is a less complacent Kellogg, a less theoretical Kellogg, a company less dependent on cereal.”
News source: Financial Times