Effective product launches are strengthening
Kellogg Company‘s ( K Quick Quote K - Free Report) assortments. Progressing along these lines, the company introduced Kellogg's Raisin Bran Toasted Oats and Honey — latest expansion of the Kellogg's Raisin Bran line-up. The product is available at retailers domestically for a suggested retail price of $2.99 for a 15.6-ounce box and $3.99 for a 22.1-ounce box. This newly-launched product is made using Kellogg's Raisin Bran ingredients such as juicy raisins and hearty bran flakes. Apart from these, it now consists of crisp, whole-grain toasted oats and a touch of original honey. The addition of whole-grain oats in the recipe is a great source of fiber, supporting digestive health and helping in overall wellness. Focus on Boosting Portfolio Strength
Kellogg boasts a legacy of more than 100 years built on a solid product portfolio and brand identity in both cereals and snacks. Its portfolio consists of strong brands such as Pringles, RXBAR, Bear Naked, Cheez-It and Rice Krispies Treats, among many others. The company is dedicated to augmenting its portfolio through the addition of more products under its existing brands, innovation and marketing initiatives. It is focused on investing in brand-building efforts. In this respect, it invests in digital media, consumer promotions and traditional advertising. Kellogg is also enhancing its in-store capabilities like increasing sales force of its struggling businesses.
Earlier this month, Kellogg announced that its popular veggie brand, MorningStar Farms, is collaborating with Dunkin’ to launch the Southwest Veggie Power Breakfast Sandwich. This meatless yet tasteful sandwich can be found at certain countrywide restaurants of Dunkin’ for a limited period. Certainly, the Southwest Veggie Power Breakfast Sandwich is likely to benefit MorningStar Farms and in turn Kellogg. It will offer customers at Dunkin’ a veggie-oriented food option by serving a plant-based protein patty. This goes in tandem with the evolving trends, wherein customers’ preference for plant-based alternatives is rising.
Kellogg is benefiting from increased demand for packaged food products amid the coronavirus-led stockpiling. Such trends have helped the company retain its organic sales trend in third-quarter 2020, which moved up nearly 5% (on excluding currency and divestitures). Management stated that demand for packaged foods owing to the pandemic-led higher at-home consumption were high, though it was moderate compared with preceding-quarter levels. This, in turn, fueled the company’s sales in retail channels (including solid growth in emerging markets) and helped it counter the declines in food sold in the away-from-home network.
All said, we believe that rising pandemic-led demand in the retail channel, coupled with strong focus on boosting portfolio are likely to continue favoring this Zacks Rank #3 (Hold) company as well as help it counter cost woes and weakness in the away-from-home channel. Shares of Kellogg have declined 16.4% in the past year against the industry’s growth of 1.9%. Better-Ranked Food Stocks The Hain Celestial ( HAIN Quick Quote HAIN - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 24.6%, on average. You can see . the complete list of today’s Zacks #1 Rank stocks here B&G Foods, Inc. ( BGS Quick Quote BGS - Free Report) — also sporting a Zacks Rank #1 at present — has a trailing four-quarter earnings surprise of 9.3%, on average. Darling Ingredients ( DAR Quick Quote DAR - Free Report) , a Zacks Ranked #2 (Buy) stock, has a trailing four-quarter earnings surprise of 26.3%, on average. The Hottest Tech Mega-Trend of All
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