Category Advisor: Frozen Breakfast: The Kellogg Co.

Last year, grocers across the country experienced shortages of Eggo frozen waffles because of problems at two Kellogg bakeries. So the Eggo team had its work cut out for it as Kellogg set out to rebuild its territory in the frozen breakfast category following the supply disruption that ended this past May.

But the company is rebounding well, outpacing the overall performance of the category and the syrup carrier segment, as well as its major subsegments: French toast, pancakes and waffles.

Kellogg continues to provide future growth by leveraging consumer- and insights-driven innovation in 2011. With heightened nutrition awareness among consumers, the new two-SKU Fiber Plus waffle line has been a success, propelled by a master-brand ad campaign. And, with the heritage Eggo waffle portfolio regaining its former position in the category, Kellogg launched its Thick & Fluffy line, featuring deeper pockets to hold more toppings.

To optimize merchandising and assortment, Kellogg embarked on a category- and retailer-focused case-pack reduction initiative to maximize variety with fewer facings to satisfy consumers. The company has leveraged findings of a recent segmentation study to better communicate Eggo’s brand strengths and personality. With changing in-market conditions, Kellogg pursued an online test to understand optimal promoted price points for Eggo, allowing retailers to remain competitively priced and grow category dollars.

Kellogg’s category management and shopper insights continue to deliver category-leading insights for its retailer partners. And though top-line sales results remain important, the team has positioned the frozen breakfast category, and the Eggo brand, for continued success.