Feeling the strain ofgrocery store prices? WK Kellogg CEOGary Pilnick’s cost-saving suggestion is simple: have a bowl of cereal for dinner.
His campaign comes at a time whenshoppers are spendingthe highest portionof their income on food compared to any other point in the last 30 years.
Pilnick made the controversial suggestionduring an interviewwith CNBC’s “Squawk on the Street” last Wednesday (February 21).
The CEO of Kellogg—which produces brands such as Frosted Flakes, Froot Loops, Corn Flakes, and Raisin Bran—was asked about the soaringfoodpricesand how more than 11% of disposable consumer income goes toward purchasing it, according to themost recent dataavailable at the U.S. Department of Agriculture.
WK Kellogg CEO Gary Pilnick’s suggestion for families feeling the strain of rising grocery store prices was met with criticism online
Image credits:CNBC Television
“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,”Pilnicksaid.
“If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable,” he added.
“We talk about making sure that we have the right pack at the right price in the right place. So having a different sized pack that’ll have a different price point, that’ll take some pressure off the consumer while they’re shopping.”
Pilnick launched a campaign presenting cereal as an economical dinner option
Image credits:Necip Duman
Thecerealcompany’s CEO also referred to the economical cost of a bowl of cereal compared to other more elaborate meals and its appeal to consumers as an affordable dinner option during the crisis.
“In general, the cereal category is a place that a lot of folks might come to because the price of a bowl of cereal with milk and with fruit is less than a dollar.
“So you can imagine why a consumer under pressure might find that to be a good place to go.”
When asked if encouraging customers to eatcerealfor dinner could “land the wrong way,” Pilnick said no.
“In fact, it’s landing really well right now,” he stated. “Cereal for dinner is something that is probably more on trend now, and we would expect [the trend] to continue as that consumer is under pressure.”
“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,” the CEO said
Image credits:Etienne Girardet
AKellogg adfrom 2023, titled “EnjoyKellogg’s® Cereal for Dinner,” shows the brand’s mascot making an entrance at a family home while members are gathered around the table considering dinner options.
“If you’re tired of cooking chicken over and over (and the kids are bored of eating it), we’ve got something you’ll want to try. Scratch that – NEED to try,” the video’s caption reads. “Turn off the stove, pop open the pantry, and pour your favorite Kellogg’s® cereal for dinner!”
“If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable,” he added
Image credits:Eduardo Soares
Prices for groceriesand restaurants have skyrocketed since the start of the pandemic. In 2022, consumers spent 11.3% of their disposable income on food, the highest level since 1991, the Wall Street Journalreportedlast week, citing data from the US Agriculture Department.
Food companies have elevated prices since the start of the pandemic as a response to higher costs for labor, ingredients, and transportation. Additionally, they’re not lowering prices becausethey don’t need to.
The interview clip has been circulating on social media, with many people describing Pilnick’s advice as tone deaf
Image credits:Naseem Buras
The interview clip has been circulating on social media, with many people describingPilnick’s campaign as “tone-deaf.” Many argued that he wouldn’t follow his own advice, considering the low nutritional value of eating cereal for dinner.
“Greedflation is forcing families to make choices like eating cereal for dinner to save money,” someone wrote on X (formerly known as Twitter). “Kellogg’s CEO is bragging about it while they show the huge climb in corporate profits that helped create the problem in the first place. F— this sh–.”
Watch the interview below
“He uses this as an opportunity to push his product,” one person said
The companyreported$651 million in net sales as of December 30, the end of the last quarter.
“This is what [companies] think of you,” one TikTok user wrote, while another commented, “#CorporateGreed.”
Someone else spoke from experience:“As a college student who has eaten cereal for dinner….it does not fill you.”
“Cereal ain’t even cheap anymore & you don’t need that much sugar b4 bed,” a separate individual said.
Another person wrote: “Meanwhile, he’s eating at 5 star restaurants every night and when he isn’t, his personal chef cooks him dinner. Absolutely disgusting.”
“I’m not about to start eating mountains of sugar and carbs for dinner,” one person wrote
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