Kelloggs – Latest Insights and Updates

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We are doing the analysis of one other very large multinational consumer brand Kellogg company. They released their quarterly earnings for Q2 2022 last week. We’ll analyze that today and see how we can take insights from it for our sales outreach. You can find Kellogg’s recent earning reports here. This video also includes printable slides. 

About Kellogg’s

The company is undergoing some pretty significant changes in executing its strategy after having been impacted during the pandemic, as well as a few other events that took place in the company. They’ve had challenges with improving margins, with wanting to build out the business in a manner that’s optimal for different markets. You will notice that the company has mentioned its kickoff announcement to split into three businesses: 

  1. For global snacking and international breakfast
  2. For only North Americal Cereal
  3. For plant-based foods

So this is a big strategic move by the company, which is very important because it opens up different kinds of opportunities for each of these businesses going forward. The transcript has fantastic nuggets that you could leverage.

Each company has its own areas of focus and priorities, that are going to end up having different needs based on the nature and size of the business. So they are very different stages of companies and logically, they all need different kinds of solutions for them to, perform efficiently and engage in the business. The snacks business has been growing fantastically.

It’s been building on a lot of momentum and the company believes that they are going to do better than expected in the rest of the year.

The grid Lego business was facing some decline due to a lot of supply disruptions and the company’s trying to recover from it. They’re confident that the strength of their brands is going to propel them to do better than what was anticipated in the beginning. 

As Kellogg spins off into three different entities, each focusing on a different market with different stages of growth and scale of the business, the financial operations of the company will need to be streamlined uniquely for each of these companies. That might present new kinds of opportunities for those businesses that are building solutions to automate financial finance operations and back office systems.

The third nugget is around how the company is preparing to recover after having had a couple of setbacks in its snacks and cereals groups. They had a fire that broke out earlier in the year. They had to wait through a lot of supply chain disruptions during the pandemic, yet they are seeing a very strong market demand for cereals, particularly given the fact that for a dollar, you can get a healthy cereal and a glass of milk.

This is a fantastic opportunity for the company to capitalize on the demand by making their supplies and their business operations a lot more efficient, including things like how they’re getting and sourcing their raw material and the distribution capabilities for the company to deliver a highly cost-effective high-quality cereal to the market.

So undoubtedly, the company is investing in supply chain automation and making sure that its distribution capabilities are efficient. 

You can find all of these insights and a lot more within B2Brain. 

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