Kellogg aims to stop using artificial colours, flavours

Kellogg aims to stop using artificial colours, flavours

Various types of Kellogg Co's cereals are pictured at a Ralphs grocery store in Pasadena, California on Monday. (Reuters photo)
Various types of Kellogg Co's cereals are pictured at a Ralphs grocery store in Pasadena, California on Monday. (Reuters photo)

Kellogg Co's Corn Flakes and Rice Krispies are set to turn all-natural soon.

The 109-year-old company, whose cereals have been a popular breakfast choice for decades, said on Tuesday that it was aiming to stop using artificial colours and flavours in its cereal and snack bars by the end of 2018.

The world's biggest breakfast cereal maker is the latest in a string of US food companies to bow to growing pressure to remove synthetic ingredients from products due to health concerns.

The company said 75% of its cereals in North America were being made without artificial colours and more than half without artificial flavours.

General Mills Inc, the maker of Cheerios cereals, said in June that it planned to have 90% of its cereals free of artificial flavours and colours by 2016, up from about 60% currently. 

The company's Trix and Reese's Puffs cereals will be among the first to use ingredients such as fruit and vegetable juices, peanut butter, cocoa and natural vanilla flavors, and will be available from this winter.

US restaurant chains and food companies have been facing pressure to remove synthetic ingredients from their products amid growing concerns that such ingredients could cause health problems.

Kraft Foods Group Inc said in April it would remove synthetic colours and preservatives from its popular macaroni and cheese meals.

Taco Bell and Pizza Hut, two of Yum Brands Inc's largest restaurant chains, sandwich chain Subway and Nestle USA have also made similar moves.

Sales at Kellogg and General Mills have shrunk in the United States due to a growing preference for less processed foods and cooked meals.

Kellogg also reported second-quarter revenue on Tuesday that topped analysts' expectations, but the 5.1% decline in sales was the seventh time in eight quarters that sales had fallen.

Sales in the company's US snacks business -- its biggest -- fell 2%, while sales in the US morning foods business, which includes cereals, fell 2.2%.

Kellogg has been transforming itself -- from making healthier products to trimming its costs.

The company started a multi-year cost cutting plan in 2013 and is using the savings to refresh its Special K brand and launch healthier foods such as granola and muesli in new markets.

Kellogg said sales of its Special K cereal were improving after repositioning the brand as "wellness", rather than diet, food and introducing a gluten-free version and new flavors.

Net income attributable to Kellogg fell 24.4% to $223 million, or 63 cents per share, in the quarter ended July 4.

Excluding items, the company earned 92 cents per share, while revenue was $3.498 billion, while analysts were expecting earnings of 92 cents per share on revenue of $3.466 billion, according to Thomson Reuters I/B/E/S. 

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