Americans are too busy to eat a bowl of cereal anymore, and food companies are freaking out.
Kyle Stock at Bloomberg Businessweek points out the change, noting that revenues at companies like General Mills, Post, and Kellogg are down this year.
Post and Kellogg have even gone as far as to lay off employees and close factories, according to Stock.
In addition to Americans being busy, they’re also increasingly staying clear of carbs, gluten, and sugar. This hurts brands like Froot Loops and Frosted Flakes, according to Stock.
“Improving cereal sales will be ‘an uphill battle,'” Stock writes, citing a report by Credit Suisse analysts.
While Americans eschew cereal, sales of portable breakfast offerings are on the rise.
Kellogg is responding by offering more healthy cereal bars and snacks.
“We recognise that sometimes consumers don’t have time for a bowl of cereal and milk,” Kellogg vice president Paul Norman said in an earnings call this week.
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