Kellogg Credit Rating Downgraded Amid Loss of Yout
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Posted On: 12/12/2016 7:33:10 PM
Kellogg Credit Rating Downgraded Amid Loss of Youth Market
Citing a loss of market, Credit Suisse has lowered its rating for shares of cereal giant Kellogg from outperform to neutral. The bank insists that Kellogg’s has lost the youth market severely crimping profits .
Once a staple of every American child’s breakfast, cereal is apparently now on the outs with consumers, especially millennials, and the waning interest in cereal products is impacting Kellogg heavily.
Kellogg’s sales fell 2.4 percent in the third quarter.
“We are downgrading Kellogg stock, … the company’s revenue growth rate continued to under-punch its peers due to ongoing pressure in the breakfast cereal category,” CNBC reported on Monday.
Analyst Robert Moskow added that thus far Kellogg’s efforts to re-tool advertising and products to appeal to today’s youth have not worked.
“The company took several positive steps to re-engage Millennial consumers with more granolas, mueslis, and ‘fashion-forward’ ingredients. But from what we can tell, these efforts have not fully stabilized the business,” Moskow told his investing clients.
Citing a loss of market, Credit Suisse has lowered its rating for shares of cereal giant Kellogg from outperform to neutral. The bank insists that Kellogg’s has lost the youth market severely crimping profits .
Once a staple of every American child’s breakfast, cereal is apparently now on the outs with consumers, especially millennials, and the waning interest in cereal products is impacting Kellogg heavily.
Kellogg’s sales fell 2.4 percent in the third quarter.
“We are downgrading Kellogg stock, … the company’s revenue growth rate continued to under-punch its peers due to ongoing pressure in the breakfast cereal category,” CNBC reported on Monday.
Analyst Robert Moskow added that thus far Kellogg’s efforts to re-tool advertising and products to appeal to today’s youth have not worked.
“The company took several positive steps to re-engage Millennial consumers with more granolas, mueslis, and ‘fashion-forward’ ingredients. But from what we can tell, these efforts have not fully stabilized the business,” Moskow told his investing clients.
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