Kellogg CEO’s ‘cereal for dinner’ creates backlash amid rising prices

KIRSTEN DUNST

“Let them eat cake. That’s such nonsense I would never say that.”

BROCK KOLLER

WELL KIRSTEN DUNST MAY HAVE A POINT – SCHOLARS ARGUE MARIE ANTOINETTE NEVER DID SAY THAT OFT-QUOTED LINE ABOUT HER STARVING SUBJECTS.

BUT THESE DAYS – IT’S NOT A QUEEN’S RECOMMENDATION ON EATING CAKE THAT’S CAUSING AN UPROAR – IT’S A C-SUITE EXECUTIVE’S ADVICE ON CONSUMING CEREAL.

“WE GOT TO REACH THE CONSUMER WHERE THEY ARE. SO WE’RE ADVERTISING ABOUT CEREAL FOR DINNER – IF YOU THINK ABOUT THE COST OF CEREAL FOR A FAMILY VERSUS WHAT THEY MIGHT OTHERWISE DO, THAT’S GOING TO BE MUCH MORE AFFORDABLE.”

THAT’S WK KELLOGG CEO GARY PILNICK IN A RECENT CNBC INTERVIEW — ADDRESSING RISING GROCERY PRICES AND THE COMPANY’S IDEAS FOR HOW PEOPLE CAN SAVE MONEY – WITH THE NATIONAL AVERAGE INCOME HOVERING JUST BELOW 60 THOUSAND DOLLARS.

SO WHAT DO PEOPLE ON SOCIAL MEDIA THINK ABOUT THESE DINNER IDEAS FROM A CEO WHO MADE CLOSE TO 5 MILLION DOLLARS LAST YEAR?

“THEY’RE GREAT!”

NOT QUITE TONY.

PEOPLE HAVE BEEN SNAPPING CRACKLING AND POPPING OVER THE CEO’S SUPPER SUGGESTIONS — FLOODING SOCIAL MEDIA –

FROM THE COMMENTS SECTION OF YOUTUBE –  “THE PEASANTS HAVE NO DINNER! ‘LET THEM EAT CEREAL.’ SAYS KELLOGG.”

TO TIKTOK AFTER TIKTOK AFTER TIKTOK

TO POSTS ON X – “DOES THIS CEO REALIZE SAYING STUFF LIKE THIS WILL ENCOURAGE MANY PEOPLE TO NEVER BUY HIS PRODUCTS AGAIN?”

AND THERE WAS THIS ONE – “MAYBE THEY SHOULD HELP AND LOWER THEIR PRICES AND THEN WE COULD REALLY SAVE MONEY. +$5 FOR CEREAL IS CRAZY.”

DIFFERENT THAN IN 1989 – WHEN CEREAL WAS COSTING $2 A BOX.

ACCORDING TO THE US DEPARTMENT OF LABOR – MORE RECENTLY — CEREAL PRICES HAVE INCREASED 28 PERCENT SINCE JANUARY 2020.  KELLOGG’S RAISING ITS PRICES 12 PERCENT IN JUST THE LATEST FISCAL YEAR — MIRRORING OTHER FOOD COMPANIES LOOKING FOR WAYS TO OFFSET RISING COSTS FOR INGREDIENTS, TRANSPORTATION AND LABOR.

WE WENT TO AN EXPERT ON ALL THINGS CEREAL – AMI – THE CREATOR BEHIND THE SOCIAL MEDIA ACCOUNT CEREAL LIFE – WHO HAS OVER 70 THOUSAND FOLLOWERS ON INSTAGRAM.

AMI SAYS HE HAS SEEN AN UPTICK IN THE PRICE OF CEREAL – BUT CURRENTLY LIVING IN CANADA – HE SAYS THE HIGHER COSTS HAVEN’T HIT HIS WALLET JUST YET.

TELLING STRAIGHT ARROW NEWS

AMI MOYAL

“In Toronto, where I’m currently stationed with family during renovations back in Miami, Walmart has been my go-to spot. They often have a solid deal: any three boxes (including family-sized) of cereal for $10, which I find quite reasonable. I typically don’t spend more than around $4 on a box, so that works out well for me.”

BROCK KOLLER

THE HIGHER PRICES HOWEVER HAVE EATEN INTO KELLOGG’S PROFITS – THE COMPANY SAYING SALES DECLINED IN THE FOURTH QUARTER 10 PERCENT FROM THE SAME PERIOD A YEAR AGO.

IN THE INTERVIEW PILNICK SAYS THE CEREAL CATEGORY HAS ALWAYS BEEN QUITE AFFORDABLE AND IT TENDS TO BE A GREAT DESTINATION WHEN CONSUMERS ARE UNDER PRESSURE.

“THE CEREAL CATEGORY IS A PLACE A LOT OF FOLKS MIGHT COME TO BECAUSE THE PRICE OF A BOWL OF CEREAL WITH MILK AND WITH FRUIT IS LESS THAN A DOLLAR – SO YOU CAN IMAGINE WHY A CONSUMER UNDER PRESSURE MIGHT FIND THAT A GOOD PLACE TO GO.”

WHEN ASKED IF THAT MARKETING MIGHT LAND THE WRONG WAY – PILNICK RESPONDED THAT 25 PERCENT OF KELLOGG’S CEREAL CONSUMPTION IS OUTSIDE THE BREAKFAST MEAL.

“CEREAL FOR DINNER IS SOMETHING THAT IS PROBABLY MORE ON TREND NOW AND WE WOULD EXPECT IT TO CONTINUE AS THAT CONSUMER IS UNDER PRESSURE.”

KELLOGG’S HAS BEEN MARKETING CEREAL AS AN OPTION FOR DINNER SINCE 2022 – IN FACT – THE COMPANY HAD A GIVEAWAY ON INSTAGRAM – GIVING PEOPLE A CHANCE TO WIN 5,000 DOLLARS AND A YEAR’S SUPPLY OF CEREAL BY SHARING A PHOTO OF THEIR FAMILY ENJOYING CEREAL FOR DINNER!

BUT IT WAS THIS INTERVIEW THAT STIRRED THE BOWL – AS CEREAL IS SOMETHING THAT HITS HOME TO A LOT OF PEOPLE –

WITH 96 PERCENT OF CONSUMERS SAYING THEY BUY CEREAL EVERY TIME THEY SHOP.

WE ASKED AMI – WHAT IS THE APPEAL OF CEREAL – FOR BREAKFAST OR NOT – HE WAXED POETIC IN HIS RESPONSE SAYING QUOTE:

AMI MOYAL

“Cereal is more than just a breakfast option; it’s woven into the fabric of my memories. Picture this: it’s a lazy Saturday morning, the sun peeking through the curtains, and the only sound is the faint hum of cartoons in the background. The whole family gathers, including our loyal dog, drawn together by the promise of Saturday morning bliss. But before the cartoons even begin, there’s a sacred ritual—the pilgrimage to the cereal cupboard. Opening that door reveals a rainbow of boxes, each holding the promise of a different adventure in every spoonful.

My love for cereal began in moments like these, where each bite felt like a small victory amidst the chaos of childhood. It’s been a steadfast companion through both the highs and lows of life, a source of comfort and joy. So, when you ask what I find appealing about cereal, it’s not just the taste or convenience; it’s the memories and emotions it evokes.”

BROCK KOLLER

UNLIKE A CEO’S INTERVIEW — THIS VIEW ON CEREAL HOPES TO NOT LEAVE A BAD TASTE IN YOUR MOUTH.