Kellogg chooses vitamin executive as next CEO
BATTLE CREEK, Mich. — Kellogg Company CEO John Bryant is stepping down next week after seven years at the helm of the cereal and snack maker.
Bryant, 51, will continue as executive chairman of the Board of Directors until March 15, 2018.
He will be replaced by Steven Cahillane, who has been president and CEO of The Nature’s Bounty Co., a vitamin and nutritional supplement manufacturer, for about three years. Cahillane held senior positions with The Coca-Cola Co. most recently as president of Coca-Cola Americas.
Cahillane, 52, had been considered a strong candidate to succeed former Coke CEO Muhtar Kent, but Cahillane left the company in late 2013 as part of a major organizational shakeup. At the time, Coke said only that he was departing to “pursue other opportunities.” He joined The Nature's Bounty Co. in September of 2014.
"As a Board, we want to express our thanks to John for everything he has contributed to our company over the course of his Kellogg career," said Donald Knauss, the lead director of the Kellogg board of directors, in a statement. "This not only includes John's accomplishments as CEO, such as continuing to transform Kellogg into a global snacks leader and significantly expanding our emerging-markets business, but also as CFO and in other prior roles.”
Cahillane also spent more than a decade in the beer industry, founding and later selling State Street Brewery in Chicago and moving on to Coors Distribution and then beer giant InBev.
"Kellogg is an incredible company with a rich legacy and iconic brands that are beloved around the world," Cahillane said in a press release. "It will be my privilege and honor to work with such a talented group of employees as we pursue the tremendous growth opportunities before us."
Bryant said in a statement that he is "confident that the strength of Steve's leadership, combined with the drive and talent of our management team and the passion of our incredible employees, will enable Kellogg to realize our vision and purpose while achieving our long-term growth goals.”
Packaged food conglomerates have been trying to appeal more to consumers who favor fresher foods, smaller, local brands and are worried about the ingredients they eat. Kellogg has said it will add probiotics to its Special K cereal later to try to boost sales.
Kellogg and competitors like General Mills and Post have also been cutting costs and changing strategies as consumer trends shift away from processed foods. The company's revenue has fallen every year since 2013.
"We will always be a cereal company at heart," Bryant wrote in a guest column for the Battle Creek Enquirer earlier this year. "However, changes in food industry dynamics and consumer needs in recent years have required us to think differently about our business, how we operate and the foods we make."
"We have evolved. For instance, we’ve significantly expanded our snacks business in pursuit of the growth opportunities that have emerged in the category."
If such change opens up new possibilities, he continued, "other times, admittedly it brings wariness and discomfort. But, as a company we have chosen not only to face change head-on, but also to embrace it."
Given the situation in which Kellogg finds itself, change in leadership may be a good thing, said Joe Stewart, who retired from his position as senior vice president of corporate affairs with Kellogg in 2000. He is currently CEO of Stewart Industries.
"In this case, I think it would be a great thing to try and return growth to the company and more importantly commitment to the community," he said. "So we should look to the change in a positive way and wish John well on his future endeavors."
Kellogg announced in August that it planned to cut 223 jobs at the ready-to-eat cereal (RTEC) plant on Porter Street in 2018, nearly 10% of the company's Battle Creek workforce.
"It's kind of come as a surprise for all of us," said Trevor Bidelman, the president of the Bakery, Confectionery, Tobacco Workers and Grain Millers Local 3-G Union. "I’m hoping to get to know the new gentleman, and maybe hope there’s a possibility to change his mind on the actions (Kellogg is) considering."
Shares of Kellogg Co., which are down about 15% since the beginning of the year, slipped 11 cents to $62.93 in trading Thursday.
The Associated Press contributed to this story. Contact Natasha Blakely at (269) 223-0114 or nblakely@battlecreekenquirer.com. Follow her on Twitter at @blakelynat.
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Kellogg at a glance
The Battle Creek-based company, started by W.K. Kellogg in 1906, is one of the world's largest producers of cereal, cookies, crackers and snacks. Brands include: Keebler, Special K, Pringles, Frosted Flakes, Corn Flakes, Rice Krispies, Cheez-It, Eggo, Mini-Wheats, Pop-Tarts.
Headquarters: Battle Creek
CEO: Steven Cahillane is replacing John Bryant
Annual sales: $13 billion
Employees: About 30,000
Steven Cahillane
Age: 52
Experience: He has a long history of executive experience, including positions at Nature’s Bounty, Coca-Cola, E&J Gallow Winery, Coors, AB InBev
Education: Northwestern University, bachelor’s degree; Harvard University, master’s degree in business administration