KELLOGGS, GENERAL MILLS CUT BACK ON CEREAL PROMOTIONS
"With the two giants of the cereal world," Kellogg Co. and
General Mills, "making good on their promises to cut back on
promotions, smaller players are scurrying to gain market share
with price specials and give aways, and consumers may benefit."
Kellogg said that its decision to but back on "deep-discount
coupons and freebies took a big spoonful out of its third-quarter
sales." This could prompt Kellogg "to dish up more big-savings
promotions in the future." But for now the company says it will
be "sticking to a pledge made earlier this year of cutting back
on promotional spending." Analysts estimated the decline in
Kellogg's volume of U.S. "ready-to-eat cereal" was 4% but said
this was offset by a rise in international volume
(Reuters/CHICAGO TRIBUNE, 10/23).