Kellogg’s and General Mills Face Major Challenges Amidst Cereal Recall and Stock Decline
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On June 25, Kellogg's experienced a drastic drop in stocks due to a massive recall of 28 million boxes of their best-selling cereals. CEO David Mackay acknowledged the struggles of 2010, noting a 4% decrease in their financial forecast in an October press release. As two leading giants in the $7.5 billion breakfast cereal market, both Kellogg’s and General Mills command over 32% market share but are now navigating intense competition and the lingering effects of recent recalls, impacting their overall performance and business strategy.
Kellogg’s and General Mills Face Major Challenges Amidst Cereal Recall and Stock Decline
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Presentation Transcript
Team Members • KarynDilone • Carmen Marin • Jessica Toporoski • Crystal Allard
Kellogg's - General Mills in food fight vs.
28 million boxes recalled Stocks dropped dramatically on June 25 due to a massive recall of 3 of Kellogg’s best selling cereal.
Kellogg Company President and CEO, David Mackay, commented, “2010 has clearly been a challenging year, and we are disappointed with our third quarter performance.” In a press release on October 21, 2010, they announced a 4% decrease in their 2010 financial forecast: • Weak performance • Intense competition • Lingering effects of cereal recall
Cereal is a $7.5 billion business. Each morning, millions of Americans consume a product from one or both companies. • “…these two giants each have just over 32 percent of the market.” • “Though they still dominate the $7.5 billion U.S. breakfast cereal market, Kellogg’s and General Mills have moved into other food categories.” By: Tom Costello
