Another Kellogg's Price Hike

Beginning January 18, the Kellogg Co. will be raising prices nationwide on most of its cereal, with the exception of All-Bran and Special K. PopTarts will also see a price hike according to the company's announcement.

In January 2008, Kellogg increased the prices of many of its snacks and cereals by single to mid-digit amounts. Then in June 2008, Kellogg reduced the size of some of its cereal boxes by 2.4 ounces. According to Longbow Research the reduction in size included Froot Loops, Cocoa Krispies and Apple Jacks and was equal to a price increase of single to mid-digit amounts.

Longbow Research reported that, "Longbow Research food analyst Alton Stump noticed Kellogg's box size reductions. In a survey of Wal-Mart stores, he found that the box reduction strategy by Kellogg has gone virtually unnoticed by consumers. Stump says that a similar strategy by General Mills Inc."

It appears that as long as shoppers keep buying the products, the prices will keep creeping up.

See Also:

• Longbow Research - Kellogg's Price Increases
  
• Current Kellogg Promotions

Photo Credit: Kellogg Co.