Kellogg Company (K - Free Report) , a popular name in cereals and snacking, announced the launch of Strawberry Krispies for the popular brand — Rice Krispies. Well, innovations have enabled the company to adapt to consumers’ changing tastes and preferences. Let’s take a closer look.
Innovation Aids Portfolio Development
The launch marks the first roll out of a new flavor for the Rice Krispies brand in almost 10 years. The new strawberry flavor helps club healthy snacking with an exciting new taste. Management stated that the Kellogg's Strawberry Krispies will be available across all major retailers and grocery locations in the United States, with a retail price in the range of $3.99-$5.69.
With constantly changing preferences, it is essential for food companies such as Kellogg to come up with alluring and novel offerings that help retain customers and attract new ones. Notably, Kellogg is dedicated toward launching new products with greater focus on health and wellness, as consumers now seek flavored products and also have substantial nutritional value. Undoubtedly, the Strawberry Krispies brand is an effort to cater to such preferences.
Encouragingly, the company’s Krispies brand consumption and share has been rising for a while. The flavor launched under the banner is expected to add greater strength and popularity. Previously, some of the well-known innovative launches of the company include products such as Special K. The company has also re-positioned the Kashi cereals brand in the United States, by converting them into GMO-free products. Additionally, the company’s innovations in the taste fun segment with Frosted Flakes and Froot Loops are generating favorable consumer responses. Moreover, the company has plans to roll out new products under the RX platform in the forthcoming periods.
In addition to product launches, Kellogg invests in innovative marketing and packaging efforts to increase the visibility of its brands. We expect that such efforts will revive the performance of the company’s U.S. Snacks segment, which witnesses pressures from stiff competition. Additionally, the company strengthens its brand portfolio through lucrative buyouts and resorts to cost-saving efforts to boost profitability. All said, we expect that such growth-oriented endeavors will instill investors’ confidence in this Zacks Rank #4 (Sell) stock that has lost almost 15% in the past three months compared with the industry’s decline of 3.9%.
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