The Covid has done well at Kellogg’s on the Belgian market
The American Kellogg’s took advantage of the comeback of breakfast and aperitif at home to boost its sales. Its market share is close to 50% in Belgium.
As everywhere, the Covid-19 pandemic and its consequences (confinement, teleworking, closure of the hospitality industry) have brought the Belgians home. No more snacks on the road or at the workplace, place for meals at home.
With the coronavirus, breakfast has become a family meal again. To the great benefit of the American giant Kellogg’s, who pulled the chestnuts out of the fire. And taken advantage of the fact that, in times of crisis, the consumer is rather inclined to return to the big traditional brands.
For Kellogg’s, the 2020 vintage therefore results in double-digit growth in Belgium. “We recorded last year a 16.8% growth in the cereals segment. And for savory snacks, growth is also in double digits“, summarizes Luc Houben, Managing Director of Kellogg’s Benelux.
This leap forward enabled Kellogg’s to gain 0.6% market share. The American giant thus obtains almost half of the Belgian market (49.4%), leaving a significant competition far behind, since there are big players such as Jordan’s, Pepsico and Nestlé.
The hollow of small snacks
If the group does not reveal its figures for 2020, the result is nevertheless positive, despite the dip caused by the closure of the hospitality industry, places of culture and leisure and by teleworking in certain segments.
“There has been a clear change in consumption patterns. With the closure of schools, businesses, catering and places of culture and leisure, no more chocolate or cereal bars at the break or at the dispenser. In small packages, sales fell by more than 50%. But this fall was more than offset by the strong increase in home consumption“, says Luc Houben.
Present in 180 countries, Kellogg’s employs 45 people – mainly salespeople, in Zaventem, and more than 600 in the Pringles salty snacks factory, in Mechelen. Bought in 2012, it produces for all of continental Europe, up to the Middle East, and for the United Kingdom.
“The Benelux is a key market in Kellogg’s strategy in continental Europe.”
Caution for 2021
The boss of Kellogg’s Benelux remains cautious in his forecast for 2021. “Consumer behavior is difficult to predict. There will undoubtedly be desire to travel abroad,” he says. Which does not prevent him from target double-digit growth again.
“The Benelux is a key market in Kellogg’s strategy in continental Europe. We will not only stay in the cereals segment, but we will also aim for healthy snacking “, specifies Luc Houben.