Kellogg Co. (K) posted increased third-quarter profits today as poor Americans around the country stopped going out to restaurants and started buying lots of cereal.
Profits rose six per cent over last year’s Q3 results, reinforcing the public demand for inexpensive eating options.
The news echoes Kellogg’s actions of the 1930s during the Great Depression. Back then, Kellogg won the cereal war against Post by doubling up on advertising and heavily pushing Rice Krispies:
Marketwatch: Kellogg has been pumping more dollars behind its cereals and snacks through increases in advertising and promotional deals at grocery stores. Chief Executive David Mackay told MarketWatch that this has helped it compete against store brands by slowing their growth.
The question remains, however: have Americans been using water or milk with their Special K?