Kellogg CEO John Bryant to Step Down -- Update
29 September 2017 - 12:02AM
Dow Jones News
By Annie Gasparro
Kellogg Co. Chief Executive John Bryant is stepping down next
week after nearly seven years leading the cereal and snack giant
through a tumultuous time in the food industry.
Steven Cahillane, chief executive of health-and-wellness company
Nature's Bounty and a former Coca-Cola Co. executive, will join
Kellogg to succeed Mr. Bryant, the company said Thursday.
Kellogg, the maker of Frosted Flakes, Pop-Tarts and Pringles,
has been battling sluggish sales as Americans stray from big brands
and processed foods, in favor of fresher, more niche
alternatives.
It isn't alone in its difficulties. Other big food makers are
also starving for sales growth. Mondelez International Inc.,
Hershey Co. and General Mills Inc. have all announced new chiefs in
the past year.
Mr. Bryant, 51, will remain chairman of the board until March
15, at which point Mr. Cahillane, 52, will assume that role. Mr.
Bryant said his successor has "an exceptional track record" and
will "continue the transformation" of Kellogg.
Mr. Bryant said in a statement Thursday that he chose to retire.
It is unclear when the discussions for succession began. Kellogg
declined to comment.
The company's core business, cereal in the U.S., has weighed on
its performance for years. Last month, Kellogg said its quarterly
sales fell 2.5% to $3.19 billion, including a 2% drop in North
America. On a comparable basis, sales fell 3.8%.
Mr. Bryant, who was born in Australia, joined Kellogg in 1998
and had stints in global strategic planning, as finance chief and
as chief operating officer, before taking on the CEO job in
2011.
At the time, the 45-year-old inherited a swath of lagging cereal
brands like Special K and Rice Krispies, which were becoming
outdated as consumers sought fresher and more natural products in
the grocery aisles. High-protein, low-carbohydrate diets had left
cereal behind, while more convenient and trendy protein bars and
egg sandwiches gained popularity.
Mr. Bryant aimed to turned around Kellogg following the sudden
departure of his predecessor and fellow Australian David Mackay.
About a year into Mr. Bryant's tenure, Kellogg acquired Pringles
chips, signaling a strategic shift to become more of a snacking
company with a greater focus on global markets.
The acquisition has served the company well but the its main
cereal business has continued to suffer. In an effort to boost
sales, Kellogg is renovating its brands to include simpler, more
natural ingredients. It has said products like frozen Eggo waffles,
which no longer contain artificial colors, have improved sales.
Meanwhile, Kellogg has followed its peers in the U.S. food
industry in drastically cutting costs through layoffs at its
corporate headquarters and by closing factories in response to
lower demand for its food.
Over the past year, Kellogg's stock has fallen 19%, similar to
its peers. During his tenure as chief, shares have climbed about
24%.
Write to Annie Gasparro at annie.gasparro@wsj.com
(END) Dow Jones Newswires
September 28, 2017 09:47 ET (13:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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