Kellogg: Plants Remain Productive Despite Worker Strike

Nov. 5, 2021
Kellogg Co. put up positive numbers for the third quarter while adjusting to an ongoing strike, company officials told investors Nov. 3.

Kellogg Co. put up positive numbers for the third quarter while adjusting to an ongoing strike, company officials told investors Nov. 3.

Kellogg is dealing with a labor shortage that began Oct. 5, with about 1,000 workers walking off the job at four RTE cereal plants. Coping strategies have included importing cereal from plants overseas, using temporary labor, sending white-collar employees to the plant floor, and cutting back on marketing and promotions for cereals in short supply.

The affected plants are “gaining productivity each and every day,” CEO Steve Cahillane told investors on a conference call. “We’ve also leveraged our global supply chain network for cereal to also mitigate” the strike’s effects.

Sales for the third fiscal quarter, ending Oct. 2, reached $3.62 billion, a 5.6% increase from the same quarter last year. Reported profit stood at $447 million, an 8.8% increase. Kellogg raised its full-year sales forecast to an increase of 2% to 3%, up from a previous prediction of zero to 1%.

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