Kellogg’s Co-Packing Costs Cut into Operating Profit
date:Nov 02, 2018
t more than 10% of sales. The good news is that demand is strong. You can see it in the scanner data where our on-the-go offerings are growing rapidly, and the growth has accelerated faster than we had anticipated.

Mr. Khan said that because of capacity constraints on existing pack formats, Kellogg has relied on co-packers for the new pack formats.

Obviously, co-packing costs money as does the related movement of product, particularly in high freight cost environment, he said. So while we lack
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