Kellogg to stop direct store delivery in U.S. Snacks business

Features Reuters

(Copyright Reuters 2017)

Corn Flakes maker Kellogg Co said on Wednesday it would stop distributing its U.S. Snacks business's products directly to stores and instead switch to its more widely used warehouse distribution model in order to cut costs.

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About 75 percent of the company's sales in the United States, including those at its Pringles, Frozen Foods and Morning Foods businesses, are done through the warehouse model, Kellogg said.

The company said it would provide severance, benefits and retention packages to the employees impacted by the transition.

(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Savio D'Souza)