Kellogg Introduces Upscale Cereal

In the wake of recently announced cutbacks and layoffs (See related article) Kellogg Co. (Battle Creek, MI) is hoping to revive its business by transferring consumer cravings for upscale food products to breakfast cereal, according to the Associated Press.

While meeting with a group of New York analysts, the company announced plans for a new cereal line targeted to consumers who are willing to pay more for premium foods. The line, dubbed Country Inn Specialties, will feature regional cereals developed with the help of actual inns across the country. Slated for a March 1999 introduction, the cereals will be packaged in bags with photos and brief histories of the inns. According to company representative, Anthony Hebron, the new line will not feature the Kellogg name on its packaging or be marketed as a Kellogg's product.

The proposal got a mixed reaction from at least one analyst.

"I think the idea to develop a premium cereal market makes sense, I'm just not sure Country Inn will cut it," said John McMillin of Prudential Securities. "I think you got to give them an 'A' for effort, but I like companies that are earning a lot of money rather than spending it."