Kellogg North America 2020 Growth Plan - Investor...
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Kellogg Company November 20, 2015 1 Enable the Growth Grow Sales and Share | OP Margin Expansion | Grow Free Cash Flow Transform Snacks Win in Breakfast Build a Next Generation Natural Business Win Where The Shopper Shops Our Vision Enrich and delight the world through foods and brands that matter Our Purpose Nourishing families so they can flourish and thrive Fuel for Growth Culture for Growth/High-Performing Team Accelerate Frozen Kellogg North America 2020 Growth Plan Morning Foods | 2 Kellogg Company | November 20, 2015
Transcript of Kellogg North America 2020 Growth Plan - Investor...
Kellogg Company November 20, 2015
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Enable the Growth
Grow Sales and Share | OP Margin Expansion | Grow Free Cash Flow
Transform SnacksWin in Breakfast Build a Next Generation Natural Business
Win Where The Shopper Shops
Our VisionEnrich and delight the world
through foods and brands that matter
Our PurposeNourishing families so they can flourish and thrive
Fuel for Growth
Culture for Growth/High-Performing Team
Accelerate Frozen
Kellogg North America 2020 Growth Plan
Morning Foods | 2Kellogg Company | November 20, 2015
Kellogg Company November 20, 2015
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Recent results are encouraging
We have the ingredients for profitable growth
Focus will be on accelerating our core cereal and Pop-Tarts businesses
Morning Foods Key Messages
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Cereal
Pop Tarts
Health & Wellness
Other
(a) 2014 actual sales
Cereal and Pop Tarts > 90% of Morning Foods Sales
Kellogg Morning Foods – $3.1 Billion Net Sales(a)
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-1.8%-1.5%
-1.0%
-0.2%
-2.2%
-1.1%-0.8%
0.1%
P52W YTD P12W P4W
Cold Cereal Category Dollar Change Trends(a)
Cold Cereal (RTEC, Granola, Muesli) Kellogg Brand
(a) AC Nielsen Scantrack, xAOC, week-ending 10/3/15(b) Kellogg excl. Kashi
Category and Kellogg’s Trending Upward
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(b)
(a) AC Nielsen Scantrack, xAOC, week-ending 10/3/15; (b) Core 6 = Special K, FMW, Raisin Bran, Frosted Flakes, Foot Loops, Rice Krispies; (c) Kellogg excl. Kashi
0.0
0.3
0.60.5
-0.1
0.1 0.1 0.1
P52W YTD P12W P4W
Kellogg Core Six(b)
Year-Over-Year Dollar Share Change(a)
Kellogg’s Brand(c)
Kellogg’s Core Six Brands Lead Growth
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Sold Out!+70% YTDvs. Forecast
YTD+6.3%(a)
Cereal Share +30bps(b)
Pop-Tarts Display+28%(b)
Highlights From Q3 2015
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(a) AC Nielsen Scantrack, xAOC, period ending 10/3/15(b) AC Nielsen Scantrack, xAOC, 4-week period ending 8/29/2015
Cold Cereal PenetrationTotal U.S.(a)
89.7% of Households
(a) AC Nielsen Scantrack, xAOC, 52-week-ending 9/5/15
“One More Box”
Cold Cereal Buy RateTotal U.S.(a)
20.6Boxes per
Year
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Food That Rocks
Morning Foods – Ingredients for Growth
Brands That Matter Shopping Experiences That Inspire
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27.5
40.8
2014 2015 YTD
Kellogg Innovation Share(RTEC)(a)
Food That Rocks!
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2014 YTD 2015E 2016E
Kellogg Innovation Growth(Morning Foods)(b)
100 108
+DD%
(a) AC Nielsen Scantrack, xAOC, week-ending 10/3/15; (b) Kellogg Financial Planning
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Food That Rocks!
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Food That Rocks!
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(a) Millward Brown, 2014 Brand Power
Brands That Matter!
5 of the Top 10 Cereal “Power” brands are Kellogg’s!(a)
Pop Tarts is #1 Power Brand Among Teen Breakfast foods!(a)
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Brands That Matter!Kids / Teens Millennials Gen X Boomers
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Brands That Matter!
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Brands That Matter!
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Perfect Shelf Win at Retail
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Shopping Experiences That Inspire
Account Plan Effectiveness
Win at RetailAccount Plan Effectiveness
2014 2015
Kellogg less Kashi Promotional Lift Change
vs. YA
2014 2015
Kellogg less Kashi Share of Display
(a) A.C. Nielsen, year-to-date, through 10/24/15
Shopping Experiences That Inspire(a)
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Perfect Shelf
P52W P26W P12W P4W
-0.4
-1.4
Kellogg RTEC SKU Velocity$ per item vs YA
+0.6+0.4
+11%+5%
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Kid RTEC All Family RTEC
Adult RTEC
Cereal “Age Flow” set
40% of ACV(a)
(a) Q3 2015 Scorecard Compliance
Shopping Experiences That Inspire
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Enabling growing immediate-consumption breakfast needs
Cereal-in-a-Cup line +10.5%(b)
(a) Q3 2015 Scorecard Compliance(b) A.C. Nielsen, xAOC, 52-weeks ending 10/24/2015
Shopping Experiences That Inspire
54% of ACV with dedicated On-the-Go set(a)
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Out-of-Breakfast Cereal Consumption is Growing(a)
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Breakfast Consumption
Non-Breakfast Consumption
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(a) Kellogg Demand Landscape, 2015; TCG analysis, 2015
Out-of-Breakfast Consumption
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Committed to Profitable Growth
2015 Stabilize
2016 Grow
2017 Accelerate
2018 Sustain
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One More Box
Food That Rocks – Leading Innovation
Brands That Matter – 360 Consumer Engagement
Shopping Experiences That Inspire – Reinvent the Cereal Aisle
Cereal Versatility and Usage Expansion
Winning Team
Committed to Profitable Growth
Returning Kellogg to Leadership
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