The Kellogg Company (K) has recently experienced falling
demand for its cereal and snack products in the US, which is a significant
hurdle as these products constitute a major portion of the company’s revenues.
While international expansion is still a key driver for Kellogg’s growth, core
product categories (cereal and snacks) have been suffering and the lack of
funds could hit the company’s international expansion plans. Bidness Etc thinks
Kellogg’s stock is a sell.
Kellogg generated 33% of its revenues from international sales in FY12
compared to 32% in FY10. The revenue share from international markets
will continue to increase due to growth in these markets and Kellogg’s
acquisition of Pringles. Read more.
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