Kellogg's to raise cereal prices & shrink portions.
As an avid cereal lover, this not only saddens me, but makes me angry as well. Not only will the price increase (about 2.7%), but they're making the portions smaller by at least 1 or 2 ounces as well! They were already too expensive and too small to begin with, now you gotta pay even MORE for even LESS!?
I'm not mad only because of the portions shrinking, but because of the trend that's going to happen amongst the other cereal companies. Kellogg's is a leading company when it comes to cereal and the other brands usually follow to either match them or to keep up. I didn't add "one up" because they can't really do that due to the reason of the price raise; they're more or less similarly affected by the thing that made Kellogg's raise their prices: Higher wheat prices and weather effects on crops. I just hope Malt-O-Meal, them having a much smaller share of the cereal market, doesn't follow too hard.
What's funny about this is that, several years ago, Kellogg's and the other brands did this big ad campaign about how they were significantly lowering prices (about 11% if I remember correctly). But, only after a few years, they raised them back up to the ridiculous high prices they were before (and currently are still). And now, it's going to go even higher! WONDERFUL!
Thank goodness for Malt-O-Meal...though, milk is getting pretty expensive as well.
Sources:
~ New York Times
~ Slashfood
~ NPR: Marketplace
I'm not mad only because of the portions shrinking, but because of the trend that's going to happen amongst the other cereal companies. Kellogg's is a leading company when it comes to cereal and the other brands usually follow to either match them or to keep up. I didn't add "one up" because they can't really do that due to the reason of the price raise; they're more or less similarly affected by the thing that made Kellogg's raise their prices: Higher wheat prices and weather effects on crops. I just hope Malt-O-Meal, them having a much smaller share of the cereal market, doesn't follow too hard.
What's funny about this is that, several years ago, Kellogg's and the other brands did this big ad campaign about how they were significantly lowering prices (about 11% if I remember correctly). But, only after a few years, they raised them back up to the ridiculous high prices they were before (and currently are still). And now, it's going to go even higher! WONDERFUL!
Thank goodness for Malt-O-Meal...though, milk is getting pretty expensive as well.
Sources:
~ New York Times
~ Slashfood
~ NPR: Marketplace