Developed Markets – Cereal
Kellogg Company November 13, 2018 Developed Markets – Cereal Doug VanDeVelde, Senior Vice President, Global Breakfast Categories November 13, 2018 Developed Markets Cereal % of Company Net Sales, 2017 Pro Forma* Total Kellogg Kellogg Developed Markets Cereal * Adjusted to include a full year of Multipro, which was not consolidated into Kellogg results until May, 2018. November 13, 2018 2 1 of 11 Kellogg Company November 13, 2018 Stabilizing Developed Markets Cereal • An Important business • Big, expandable brands • Already stabilizing core international markets • Signs of progress in the U.S. • Investing now for stability over time November 13, 2018 3 An Enduring Category • Enduring Attributes – taste, nutrition, convenience, affordability • Versatile food – mixable, portable, meal & snack • High household penetration – multiple boxes in the pantry • Important for retailers – on shopping list, drives basket size • Responds to brand building – innovation, A&P, low private-label share November 13, 2018 4 2 of 11 Kellogg Company November 13, 2018 Shifts With Food Beliefs – Stable Over Time RTE Cereal Category, U.S., Retail Sales Growth +0.2% Fiber, CAGR Low-Calorie, 1997-2017 Low-Fat 1997 2017 Low-Carb Protein Diets Source: Nielsen November 13, 2018 5 Cereal – Growth Through Occasions Win Through Occasions Core is Breakfast Growth from Cereal as Snack At Home Away from Home Snacking • Cereal #1 food eaten * • Growing occasion • Big and growing occasions • Cereal only 15% of • Cereal underdeveloped • Cereal has low share, growing +DD * the total occasion • Benefits of cereal more advantaged Grow share of Launch food and pack Launch food and pack occasion innovation innovation Amplify Health & Expand into new Communicate relevance of Wellness Channels brands for the occasions * Aggregate of U.S., U.K., Canada, and Australia.
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