With consumer demand for less artificial food products on the rise, Kellogg’s has decided to go all-natural.
The 109-year-old company, whose products have been staples in the breakfast world for decades, noted on Tuesday that it would aim to stop its use of artificial colours and flavours by the end of 2018. As of now, says the cereal giant, around 75 per cent of its products are being made without these ingredients.
MORE INDUSTRY NEWS
- Global savoury snacks market to hit $166.6 billion by 2020
- Lower loonie could boost back-to-school spending
- Federal court certifies privacy class action by medical marijuana patients against Health Canada
Kellogg’s is just one in a string of North American food companies to remove synthetic ingredients from products due to health concerns. General Mills also noted in June that it plans to have 90 per cent of its cereals free of artificial colouring and flavouring by 2016, up from its current standing at around 60 per cent.
The growing consumer preference for less processed foods has also recently shrunk the sales for both of these companies. While the second-quarter revenue that Kellogg’s recently reported topped analysts’ expectations, it still showed a 5.1 per cent decline in sales. This was the seventh time in eight quarters that sales have fallen for the company.
Sales in the company’s U.S. snacks business—its biggest industry—fell 2 per cent, while sales in the U.S. morning foods business, which includes cereals, fell 2.2 per cent.
