Kellogg Company (NYSE:K) Q2 2023 Earnings Call Transcript

From a snacking perspective, it’s always been a very highly impulsive category. And so coming out of bottlenecks and shortages and low service levels, you don’t get the type of quality display that really drives the type that we’re used to seeing if your service levels aren’t above the 95 percentage rate. And so as we think about the back half of the year and some of the things I’ve mentioned around quality merchandising and our confidence in our supply chain, we see that as a big opportunity for us going forward for brands like Pringles, Cheez-It, Rice Krispies treats, which are highly impulsive. Front end is important. Display disruption opportunities throughout the store is really important. And so we see — we’re really pleased with the type of plans that we have in place for the back half of the year that we think will drive continued good performance, which is why we’re more constructive about volume going forward.

And look at this past quarter’s volume performance is in North America, as whether you call it a high watermark or a low watermark, but moving better — moving clearly in a better direction based on everything that we see.

Q – Matt Smith: Thank you for that, Steve. Looking forward to seeing everybody in next week and I’ll leave it there and pass it on.

A – Steve Cahillane: Okay. Thank you.

John Renwick: All right, operator, I don’t think we have time. We are at the half hour here. Thanks, everyone, for your interest, and please contact us if you have any follow-up questions to ask.

Operator: Thank you for joining today’s call. You may now disconnect your lines.