About Gary Pilnick
Gary Pilnick, chairman and CEO of WK Kellogg, has drawn attention for comments made during media appearances in 2024. In February, during an appearance on CNBC's "Squawk on the Street," Pilnick suggested that families facing financial pressure could consider cereal for dinner, stating that "the price of a bowl of cereal with milk and with fruit is less than a dollar" and that the company was "advertising about cereal for dinner." He noted that over 25% of cereal consumption occurs outside of breakfast, with dinner being a growing occasion. The remarks generated criticism on social media, with some users characterizing the suggestion as out of touch with the economic realities of households struggling with rising grocery prices.
In later appearances, Pilnick addressed other topics, including the company's use of artificial food dyes. He stated that the FDA had not evaluated the safety of Red 40 in over a decade, and that Kellogg's had previously removed and then reinstated artificial dyes in Froot Loops after sales declined. He said the company had vowed to remove artificial dyes and preservatives from U.S. cereals by 2018 but had not done so, attributing the decision to consumer preferences for "more vibrant colors." Pilnick also discussed WK Kellogg's spin-off from Kellanova, describing the company's singular focus on cereal and a plan to invest $450 to $500 million to modernize its supply chain.
Source: AI-verified profile updated from Gary Pilnick's recent appearances.
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Transcript (3 segments)
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Gary Pilnick0:00
The cereal category has always been quite affordable and it tends to be a great destination when consumers are under pressure. So some of the things that we're doing is first messaging: we got to reach the consumer where they are. So we're advertising about cereal for dinner. If you think about the cost of cereal for a family versus what they might otherwise do, that's going to be much more affordable. The other places that we like to go is we talk about making sure we have the right pack at the right price in the right place. So having a different size pack that'll have a different price point that'll take some pressure off the consumer while they're shopping. So those are some of the things that we're doing. But in general, the cereal category is a place that a lot of folks might come to because the price of a bowl of cereal with milk and with fruit is less than a dollar. So you can imagine why a consumer under pressure might find that to be a good place to go.
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Interviewer0:50
I'm all for innovation and marketing, but the idea of having cereal for dinner... Is there the potential for that to land the wrong way?
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Gary Pilnick1:01
We don't think so. In fact, it's landing really well right now. When we look at all of our data, of course we would know that breakfast cereal is the number one choice for in-home consumption. We understand that for breakfast. It turns out that over 25% of our consumption is outside the breakfast occasion. A lot of it's at dinner, and that occasion continues to grow, as well as a snacking occasion. But cereal for dinner is something that is probably more on trend now, and we would expect to continue as that consumer is under pressure.
