'Gary Pilnick, WK Kellogg co-chairman and CEO, joins 'Squawk on the Street' to discuss the consumer share of income spent on food, what's landing well with the consumer, and Pilnick's conversations with clients like Walmart and Target.'
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NewsTranscript
00:00 The cereal category has always been quite affordable and it tends to be a great destination
00:05 when consumers are under pressure.
00:06 So some of the things that we're doing is first messaging.
00:09 We got to reach the consumer where they are.
00:11 So we're advertising about cereal for dinner.
00:13 If you think about the cost of cereal for a family versus what they might otherwise
00:17 do, that's going to be much more affordable.
00:20 The other places that we like to go is we talk about making sure we have the right pack
00:25 at the right price in the right place.
00:27 So having a different size pack that will have a different price point that will take
00:31 some pressure off the consumer while they're shopping.
00:34 So those are some of the things that we're doing.
00:35 But in general, the cereal category is a place that a lot of folks might come to because
00:41 the price of a bowl of cereal with milk and with fruit is less than a dollar.
00:46 So you can imagine why a consumer under pressure might find that to be a good place to go.
00:51 I'm all for innovation and marketing, but the idea of having cereal for dinner, is there
00:56 the potential for that to land the wrong way?
01:00 We don't think so.
01:01 In fact, it's landing really well right now, Carl.
01:03 When we look at all of our data, of course, we would know that breakfast cereal is the
01:07 number one choice for in-home consumption.
01:09 We understand that for breakfast.
01:11 It turns out that over 25 percent of our consumption is outside the breakfast occasion.
01:16 A lot of it's at dinner and that occasion continues to grow.
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