Kellogg’s CEO Gary Pilnick advised shoppers chalking up more of their paychecks to soaring grocery bills than they have in the past three decades to just eat cereal instead.
“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure, Pilnickan said in an interview with CNBC last week.
“If you think about the cost of cereal for a family versus what they might otherwise do, thats going to be much more affordable.”
CNBC host Carl Quintanilla asked the Kellogg’s boss if encouraging cash-strapped customers to eat cereal for dinner could land the wrong way,” to which a cheery Pilnick replied: In fact, its landing really well right now.”
“Cereal for dinner is something that is probably more on trend now,” Pilnick insisted during an interview earlier reported on by CNN, noting that a bowl of cereal with milk and fresh fruit is under $1.
“We would expect [the trend] to continue as that consumer is under pressure.”
Kellogg’s — behind popular breakfast staples like Corn Flakes, Froot Loops, Frosted Mini Wheats and Raisin Bran, among others — has been banking on a breakfast-for-dinner trend catching on since 2022, when it initially launched a campaign to get Americans to add the notoriously sugary meal to their dinnertime rotation.
The push, which touted the tagline “give chicken the night off,” argued that aside from its low cost, cereal for dinner is a low-prep, low-mess option, according to a press release at the time.
Pilnick’s prediction, however, missed the mark, and viewers took to social media to share their disdain of having to swap pricier options that include meat and vegetables for cereal.
Another suggested that Kellogg’s initative was capitalizing on the struggles of Americans who, according to data from the Agriculture Department, gave up 11.4% of their disposable income to buy food in 2022 — the most since 1999.
According to the USDA, food-at-home prices increased another 5% last year compared to 2022 or double the historical average rate at which retail food price inflation rose per year between 2003 and 2022.
“Anything @KelloggsUS can do to make more money off people during times of crisis. I wonder what their CEO is having for dinner? Smh Price hiking all day without a care. Shame shame,” another user wrote to X.
“We live in a world where families have to choose cereal for dinner to save money. Sad,” another user shared Monday.
For reference, Pilnick’s annual compensation includes a $1 million base salary and over $4 million in incentive compensation, according to a September 2023 Securities and Exchange Commission filing.
“Each the rich instead,” another viewer suggested on Instagram, while another commenter chimed in: “Hearing welathy folks put a marketing spin on poverty is wild.”
Others, meanwhile, bashed the idea of having cereal for breakfast because of its poor nutritional value.
“Cereal for breakfast, lunch or dinner is garbage. Learn more about nutrition for your own health,” an X user wrote.
“Hey, everyone, how about a big bowl of empty calories for dinner?” another quipped.
For reference, a bowl of Rice Krispies — Kellogg’s most popular offering, according to Google data shared with Food & Wine — a 1.5-cup serving of the toasted rice contains 150 calories, 36 gramd of carbohydrates and four grams of added sugars.
A 12-ounce box Rice Krispies cereal retails for $3.99 at Target or $3.68 at Walmart, according to the retailers’ respective websites.
Per USDA data, the rate of price increases for cereals and bakery products stood at 8.4% last year.
Representatives for Kellogg’s did not immediately respond to The Post’s request for comment.
The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.
The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.
That was up from the 3.4% rate seen the previous month. Economists had expected no change.
ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.
“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”
A key driver of food inflation has been meat prices.
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Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.
Image: Beef has seen the biggest percentage increase in meat costs. Pic: PA
High global demand alongside raised production costs have been blamed.
But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.
“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”
It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.
Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”
Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.
“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”
The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.
Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.
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8:30
Is the cost of living crisis over?
Most are still reeling from the effects of high energy bills.
The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.
Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.
The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.
The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.
That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.
Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.
“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.
“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”
Now details of the enormous accidental data breach by a British soldier that put thousands of Afghans’ lives at risk can be discussed publicly – Sam and Anne try to address some of the biggest questions on this episode.
They include:
Why did the government break the glass on using a superinjunction?
Has anyone been sacked?
Why did the Labour government keep the superinjunction in place for so long?
There’s still a bit of time to go over Rachel Reeves’ Mansion House speech. Did it reassure financiers and investors?
An Afghan man who worked for the British military has told Sky News he feels betrayed and has “completely lost (his) mind” after his identity was part of a massive data breach.
The man, who spoke anonymously to Sky News from Afghanistan, says he worked with British forces for more than 10 years.
But now, he regrets working alongside those troops, who were first deployed to Afghanistan in 2001.
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1:59
Afghans being relocated after data breach
“I have done everything for the British forces … I regret that – why (did) I put my family in danger because of that? Is this is justice?
“We work for them, for [the] British, we help them. So now we are left behind, right now. And from today, I don’t know about my future.”
He described receiving an email warning him that his details had been revealed.
He said: “When I saw this one story… I completely lost my mind. I just thought… about my future… my family’s.
“I’ve got two kids. All my family are… in danger. Right now… I’m just completely lost.”
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The mistake by the Ministry of Defence in early 2022 ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans.
On Tuesday, a court order – preventing the media reporting details of a secret relocation programme – was lifted.
Defence Secretary John Healey said about 6,900 Afghans and their family members have been relocated or were on their way to the UK under the previously secret scheme.
He said no one else from Afghanistan would be offered asylum, after a government review found little evidence of intent from the Taliban to seek retribution.
But the anonymous Afghan man who spoke to Sky News disputed this. He claimed the Taliban, who returned to power in 2021, were actively seeking people who worked with British forces.
“My family is finished,” he said. “I request… kindly request from the British government… the King… please evacuate us.
“Maybe tomorrow we will not be anymore. Please, please help us.”