Kellogg Scaling Back Tests of Ensemble Line
Kellogg Co. cut the number of test markets for its Ensemble line of cholesterol-lowering foods, indicating the products could be dropped by year-end, analysts said. The line of foods, such as breads, pastas and frozen meals, are now being tested only in Grand Rapids, Mich., after initial tests were conducted in five Midwest states. Battle Creek, Mich.-based Kellogg said it cut the test markets because it had not achieved its own distribution goals. Ensemble products contain natural soluble fibers and were designed to lower cholesterol levels, a claim that had Food and Drug Administration backing. “Reducing our test market will enable us to work more closely with several key customers on ways to overcome this merchandising challenge,” said William Mayer, vice president of new business development. The company stands to make a higher profit on new convenience foods, such as line extensions of its Rice Krispies Treats and Pop-Tarts breakfast snacks, rather than spend a lot of time and money trying to interest consumers in the Ensemble products, analysts said. Kellogg stock fell 13 cents to close at $33.94 on the NYSE.
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