Business Spotlight: Kellogg’s Part 2

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. accusation / ˌæk yʊˈzeɪ ʃən / (n.) – a statement claiming that someone did something wrong or illegal
    Example:

    Carol made the accusation that John is lying.


  2. acquire / əˈkwaɪər / (v.) – to own or get something, usually by buying it
    Example:

    The company acquired a new office building in New York last month.


  3. fad / fæd / (n.) – something, such as a style or activity, that’s popular for a short time
    Example:

    When I was in high school, cargo pants were a fad.


  4. tie-in / ˈtaɪˌɪn / (n.) – a way of promoting or advertising a product by selling it with a popular product
    Example:

    As a tie-in with the new animated movie, each box of cereal contains a toy of one of the main characters.


  5. store brand / stɔr brænd / (n.) – a product with the name of the store that sells it instead of the company that made it
    Example:

    My family often buys store brands because they’re cheaper.


Article

Read the text below.

Continued from Part 1…


Kellogg’s popularity decreased in the 1970s and ’80s. A number of health accusations were made against sugary cereals, and as baby boomers got older, interest in the popular cereals of the ’50s dropped. Nonetheless, Kellogg’s also acquired a number of businesses during this period, and the fiber fad of the ’80s saw sales of All Bran skyrocket.


In the ’90s, Kellogg’s turned its efforts to tie-ins with popular brands like Disney. Nevertheless, competition tightened, especially due to the rise of store brand cereals and, by 2001, Kellogg’s was overtaken by Nestle-owned General Mills Inc. as the world’s No. 1 cereal maker.


In 2012, after acquiring Pringles, Kellogg’s became the second-largest food company in the world. More notably, as health awareness and brand ethics have become more important to consumers over the last 20 years, Kellogg’s has invested billions in sugar-free products and advocacy efforts. Could this be enough to push today’s globally minded Japanese past a cereal consumption of 6.9%? (Jasmin Hayward)


This article was provided by The Japan Times Alpha.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The article says that only 6.9% of Japanese people eat cereal. In your opinion, what could Kellogg’s do to increase that number (ex. import more varieties of cereal from abroad, launch marketing campaigns)? Why? Discuss.
  • A number of health accusations have been made against sugary cereals. How do you feel about giving sugary cereal to kids for breakfast? Why? Discuss.

Discussion B

  • Store brand cereals became a major competitor for Kellogg’s in the ’90s. How do you personally feel about store brand foods (ex. good value, low quality)? Why? Discuss.
  • Health awareness and brand ethics have become more important to consumers over the last 20 years. How much do you pay attention to nutrition and the manufacturer’s ethics when deciding what food to buy? Why? Discuss.