What's eating up Kellanova's India Business?
Kellogg Co, is struggling with low sales growth and profit in India, a market that prefers traditional or savoury breakfast compared to its ready-to-eat cornflakes and muesli alternatives. For FY24, the American food company reported one of its slowest sales growth in a decade at 4% to ₹1,610 crore, with a net profit decline of 19% to ₹97 crore, as per its filing with the Registrar of Companies. A year ago, it had sales of ₹1,554 crore with net profit of ₹119 crore. Last week, chocolate maker Mars agreed to buy Kellanova for nearly $36 billion.
«Cornflakes is on a decline as a category and for Kellogg, the segment accounts for the bulk of the sales. While the company has been driving sales of other products such as oats and muesli, competition is intense in these segments,» said an industry executive, who did not wish to be named.
In India, Kellogg started its first manufacturing plant in 1994. Its second unit opened in 2016, followed by a research and development centre to develop breakfast products for India and other emerging markets in the Asia-Pacific. Four years ago, the company that globally relies on western style breakfast options, launched Indian options including upma in select markets to widen its consumer base, a strategy which has not worked yet.
By combining «Kell» from Kellogg with «anova» from the Latin word 'nova', meaning new, the company on its website said the name signals its ambition to continuously evolve as an innovative, next-generation, global snacking powerhouse.
In India's snacking
