Is Kellogg's Growth Pivot a Good Move for Investors?
Iconic food maker Kellogg (NYSE: K) had a tough year in 2021. Investors were very downbeat on the stock, with the share prices up just 3.5% or so when the S&P 500 index gained 14%. Meanwhile, the consumer staples group, using Consumer Staples Select Sector SPDR ETF as a proxy, rose a huge 27%. So it makes some sense that Kellogg is looking to make changes, but the path that management has decided on is a huge shift. Is it a good direction?
One of the biggest headwinds for Kellogg in 2021 was its U.S. cereal business. This category of the food sector is not exactly known for being a highflier. In fact, the niche has been kind of out of favor for years as consumers shifted toward other breakfast options. Although cereal is bouncing back some now, the biggest fight in the cereal aisle over the past few years has really been over market share as players fight for a piece of consumers' wallets.
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Source Fool.com
