) recently introduced new low calorie popcorn chips, under its
famous Special K snacks line. Special K Popcorn Chips are baked
instead of fried and have a crunch. The popcorn chips come in two
flavors, Butter and Sweet & Salty.
Each serving of 28 chips contains 120 calories. The launch of
Special K Popcorn Chips comes on the heels of the Cracker Chips
launch under the brand Special K.
The popular brand Special K targets the growing number of health
conscious consumers who prefer the convenience of nutritious
packaged food. Special K Popcorn Chips particularly capitalizes on
the increasing awareness and need of healthy snacking options.
There is a growing demand for healthy packaged food with all their
nutritional values and taste intact.
Headquartered in Battle Creek, Michigan, Kellogg Company is the
world's leading producer of cereals and holds solid market position
for snacks and frozen foods. The company is gradually strengthening
its snacks portfolio to reduce dependence on its mainstay cereal
business which is currently struggling.
With the June 2012 acquisition of
Procter & Gamble
) snack unit which included the iconic brand of potato snack,
Pringles, Kellogg will be a strong player in the snacks business,
second only to
). Further, we believe the Pringles buyout is likely to reduce
Kellogg's dependence on its cereal business, apart from adding an
important brand to its already popular offerings of snacks like
Keebler and Cheez-It.
Kellogg Company carries a Zacks #3 Rank in the near term (Hold
rating). We currently have a Neutral recommendation on the
We are bullish on the long- term prospects of the company due to
its solid brand positioning, its geographic diversity and
cost-saving initiatives. Particularly, we are encouraged by the
growth potential, diversification and international presence that
the Pringles deal provides.
However, Kellogg's second quarter 2012 results have been soft,
owing to top-line decline, commodity cost inflation and sluggish
KELLOGG CO (K): Free Stock Analysis Report
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PROCTER & GAMBL (PG): Free Stock Analysis
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