Kellogg Company (NYSE: K) announced that CEO John A. Bryant of running the company for 20 years will retire next week. Earlier this month, 17 CEOs of public big food manufacturers and retailers had left their positions including those from General Mills, Coca Cola, and Mondelez. There has been a trend in battling against activist investors, cost cutting, and great pressure to cut their prices from retailers competing with Amazon. Recently, this marks the most disruptive and challenging period that industry insiders have seen.Kellogg reported a 2% decline in revenue last month.
Steven Cahillane, CEO of vitamin and supplement company Nature’s Bounty is to replace Bryant and is aiming to adjust to consumers’ demand for healthier food. Packaged food companies have been trying to appeal more to customers who prefer fresher foods, smaller, local brands, and are concerned about the ingredients they eat. Add probiotics to their Special K cereal for example, is a first move Kellogg is aiming for in order to try to boost sales. The company as well as rivals such as General Mills and Post have been cutting costs and changing strategies as shoppers shift away from processed foods.