Kellogg completely turned around the most problematic part of its business in just 3 months

Breakfast is once again the most important meal of the day at Kellogg.

On Thursday, Kellogg posted the first positive quarter for its morning food business sales in two and a half years, with growth of 1.5% in the fourth quarter, thanks to a 4% boost in the cereal category.

“I think if you asked me back on the third quarter conference call, our expectations for US cereal, we would have defined flat sales in 2016 as success,” CEO John Bryant said in an earnings call on Thursday. “Given the strength of US cereal across 2015, we’d actually expect our US cereal business to grow slightly, a couple of per cent in 2016.”

Bryant said that the success is rooted in the company’s investment in changing ingredients and revamping branding, with examples such as adding more berries to Special K Red Berries and introducing Raisin Bran with cranberries.

With cereal sales
dropping 5% across the industry from 2009 to 2014, Kellogg has recently seriously invested in snacks and international offerings. Still, cereal remains a crucial part of the company’s business. Apparently, Kellogg’s iconic cereal brands found rock bottom in 2015 — and are now finally rebounding.

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