Kellogg Tests "More Than Just Breakfast" Flakes

Kellogg's Vector meal replacement flakes, currently being test-marketed in Canada, are designed not just to be eaten at breakfast but to replace any meal of the day.

"The product is only destined for Canada but that's not to say the rest of the Kellogg world isn't watching what's going to happen with this product," Kellogg Canada president Philip Donne said.

The Vector product, which is made of whole wheat, rice flakes, oat granola and protein and are not as sweet as many cereals, is scheduled to be presented to stock analysts next week.

Consumer impatience with the milk-and-cereal combination dissolved Kellogg's cereal sales and scooped away its U.S. market share to 32% in 1998 from 40% in 1988.

"As far as the impact it will have on the stock's value, I don't think you'll see that yet, but I think it's an indication that things are happening in the company and we're preparing to challenge some of the boundaries that used to hold us back in marketing products," Donne said.