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Kellogg says it will raise prices
UPI ^ | 2/4/2011 | Staff

Posted on 02/04/2011 11:30:07 PM PST by FromLori

U.S. cereal giant Kellogg Co. said it would raise prices 3 percent in 2011, the same increase it reported for its profits in 2010.

Fourth-quarter profits rose 7 percent over the third quarter and annual profits were up 3 percent, The Detroit News reported Friday. Revenues for the year dropped 1 percent to $12.4 billion.

John Bryant, the company's new chief executive officer, said Kellogg would raise prices due to the rising cost of commodities.

"The price increases are merely passing on a portion of those higher costs," he said.

(Excerpt) Read more at upi.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: burningfood; cereal; economy; ethanol; foodprices; foodsupply; inflation; kellogg; kelloggs; preparedness

1 posted on 02/04/2011 11:30:10 PM PST by FromLori
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To: FromLori

Grain remains stubbornly high in price. Expect to pay more for cereals at your supermarket this year.


2 posted on 02/04/2011 11:32:52 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Nachum

Ping


3 posted on 02/04/2011 11:34:38 PM PST by Jet Jaguar
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To: FromLori
I'm so bad at math and business. I'm not sure I follow this story.

Revenues were down 1%.

Profits were up 3%.

So they are going to raise prices 3% because of rising commodity prices.

I guess that's how you keep profits rising when revenue is falling.

4 posted on 02/04/2011 11:42:35 PM PST by TigersEye (Who crashed the markets on 9/28/08 and why?)
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To: goldstategop

And cereal has ALREADY been expensive for years, IMO. I mean, somebody’s gotta pay for all those fancy ads.


5 posted on 02/04/2011 11:42:51 PM PST by GnuHere
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To: FromLori
( * Kellogg says it will raise prices* ) .... so ? along with raising prices, they will package it in smaller boxes and smaller product ?

Instead of Frosted Miniwheats, it will be, Frosted Micro Miniwheats.
6 posted on 02/04/2011 11:46:15 PM PST by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: FromLori

Lucky,my family doesn’t eat their garbage.


7 posted on 02/04/2011 11:48:44 PM PST by taxtruth (Don't end the fed,jail the fed!)
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To: FromLori

If Cocoa Puffs were oil, some liberals would give a crap...and then blame it on Bush. But I doubt there will be congressional hearings to harangue “Big Corn Flake” executives into explaining their price increases.


8 posted on 02/04/2011 11:51:57 PM PST by OrangeHoof (Washington, we Texans want a divorce!)
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To: FromLori

Egypt. Coming to a town near you.


9 posted on 02/05/2011 12:12:26 AM PST by sinanju
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To: OrangeHoof
Are you suggesting that a 12 oz. box of corn flakes shouldn't cost more than a bushel of corn?
10 posted on 02/05/2011 12:15:22 AM PST by TigersEye (Who crashed the markets on 9/28/08 and why?)
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To: FromLori

Flakes.


11 posted on 02/05/2011 12:38:13 AM PST by Vendome (Don't take life so seriously..... You won't live through it anyway.)
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To: FromLori
Kellogg is a business, I think they should set whatever price they want; and I hope they make plenty of profit for their shareholders.

I'll trust the competitive marketplace to keep my prices down more than I'll trust any corrupted politician.

12 posted on 02/05/2011 1:34:24 AM PST by The Duke
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To: The Duke
I'll trust the competitive marketplace to keep my prices down more than I'll trust any corrupted politician.

You mean the competitive market place we have today?

The one skewed by tax breaks, farm subsidies for corporate farmers, government support of bulk transport systems, futures market manipulation through automated bid spiking, . . .

That competitive market?

If it was truly a competitive market, I'd be with ya all the way.

Unfortunately, it's a huge business.

And where there's huge business, there's huge money.

And where there's huge money, there's a politician looking to "help" its constituents, 'cause, well, you know -- someone needs to look out for the little people (and, of course, be rewarded for their efforts).

13 posted on 02/05/2011 2:08:44 AM PST by Quiller (When you're fighting to survive, there is no "try" -- there is only do, or do not.)
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To: Quiller

What price should we tell Kellogg’s to sell it’s product at? I think we should take a poll. I’m sure we’d be just as informed in the decision as any of the politician’s when they set price controls.


14 posted on 02/05/2011 3:01:59 AM PST by steveyp
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To: FromLori

The box the product is in costs more than the cereal in it, perhaps because it is only half filled.


15 posted on 02/05/2011 3:21:48 AM PST by Venturer
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To: steveyp
I’m sure we’d be just as informed in the decision as any of the politician’s when they set price controls.

But not nearly as well-rewarded for our efforts on behalf of the well-being of our republic and our constituents. < /sarc>

16 posted on 02/05/2011 3:47:45 AM PST by Quiller (When you're fighting to survive, there is no "try" -- there is only do, or do not.)
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To: GnuHere
I agree. Cereal is too expensive. I like protein better for breakfast anyway.
17 posted on 02/05/2011 6:13:51 AM PST by Huck (one per-center)
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To: Quiller

It’s about centralization. Drive the little guys out of business, rubber stamp all the mergers in each industry; I think they call it “consolidation”. It’s easier for the gov’t to control industry that way.


18 posted on 02/05/2011 6:46:30 AM PST by virgil
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To: steveyp

“What price should we tell Kellogg’s to sell it’s product at? I think we should take a poll. I’m sure we’d be just as informed in the decision as any of the politician’s when they set price controls.”

I’m with you. Between this and having to listen to electrical power, oil companies, and insurance companies CONSPIRING in smoke-filled rooms to screw the little guy, I’m starting to wonder if my computer’s address bar is lying to me and I’m really at DU. Not to mention everyone to the left of Hitler being called a RINO.


19 posted on 02/05/2011 6:48:23 AM PST by BobL (PLEASE READ: http://www.freerepublic.com/focus/f-news/2657811/posts)
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To: taxtruth

Haven’t bought cereal in I don’t know how long. Make my own bread; buy bulk oatmeal from the Mennonite store.


20 posted on 02/05/2011 7:33:07 AM PST by AbolishCSEU (Percentage of Income in CS is inversely proportionate to Mother's parenting of children)
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To: taxtruth
Lucky,my family doesn’t eat their garbage.

Yep, this price increase is going to cost me exactly $0.00 in my cereal budget.

I think maybe we have a box in some cabinet but it's so old it's time to throw it out, maybe the birds will eat it.

I know what I can do with it, throw the contents to the birds, shred the box, pour milk over it and eat the box, same nutritional value.

21 posted on 02/05/2011 8:28:59 AM PST by Graybeard58 (Of course Obama loves his country. The thing is, Sarah loves mine.)
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To: Quiller
You mean the competitive market place we have today? The one skewed by tax breaks, farm subsidies for corporate farmers, government support of bulk transport systems, futures market manipulation through automated bid spiking, . . . That competitive market?

Every business person I know has to struggle and compete. And that competition drives our prices down (unfortunately!)

Sure, our capitalist system is not free of distortion and corruption, but I still trust it 100x more than some centrally-planned economy.

22 posted on 02/05/2011 1:18:51 PM PST by The Duke
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To: The Duke
Sure, our capitalist system is not free of distortion and corruption, but I still trust it 100x more than some centrally-planned economy.

Our economy is becoming more centrally-planned by the day.

23 posted on 02/05/2011 1:22:22 PM PST by dfwgator
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To: The Duke
Sure, our capitalist system is not free of distortion and corruption, but I still trust it 100x more than some centrally-planned economy.

Concur.

I just have to wonder how what the market would look like if it was truly competitive, not manipulated by a 'benevolent' government.

24 posted on 02/05/2011 2:06:21 PM PST by Quiller (When you're fighting to survive, there is no "try" -- there is only do, or do not.)
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To: Quiller
Concur. I just have to wonder how what the market would look like if it was truly competitive, not manipulated by a 'benevolent' government.

To most of us Freepers it would pretty much be like Heaven.

Unfortunately we've been far too tolerant of the 'bad guys' for far too long, and as a result Heaven is now far, far away.

25 posted on 02/05/2011 4:24:08 PM PST by The Duke
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

Thanks JJ

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


26 posted on 02/05/2011 7:01:13 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: FromLori

if anyone is interested there is a site called
http://inflation.us/

they have video and articles that have been warning about rising prices on food for a while.
They have been very precise on their predictions and sadly very correct.


27 posted on 02/05/2011 7:19:07 PM PST by Munz (All tyranny needs to gain a foothold is for people of good conscience to remain silent.)
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To: Munz

Thank you great info.


28 posted on 02/06/2011 8:13:42 AM PST by FromLori (FromLori">)
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