Feeling the strain of grocery store prices? WK Kellogg CEO Gary Pilnick’s cost-saving suggestion is simple: have a bowl of cereal for dinner. 

His campaign comes at a time when shoppers are spending the highest portion of their income on food compared to any other point in the last 30 years.

Pilnick made the controversial suggestion during an interview with CNBC’s “Squawk on the Street” last Wednesday (February 21). 

The CEO of Kellogg—which produces brands such as Frosted Flakes, Froot Loops, Corn Flakes, and Raisin Bran—was asked about the soaring food prices and how more than 11% of disposable consumer income goes toward purchasing it, according to the most recent data available at the U.S. Department of Agriculture.

WK Kellogg CEO Gary Pilnick’s suggestion for families feeling the strain of rising grocery store prices was met with criticism online

Image credits: CNBC Television

“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,” Pilnick said.

“If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable,” he added. 

“We talk about making sure that we have the right pack at the right price in the right place. So having a different sized pack that’ll have a different price point, that’ll take some pressure off the consumer while they’re shopping.” 

Pilnick launched a campaign presenting cereal as an economical dinner option

Image credits: Necip Duman

The cereal company’s CEO also referred to the economical cost of a bowl of cereal compared to other more elaborate meals and its appeal to consumers as an affordable dinner option during the crisis.

“In general, the cereal category is a place that a lot of folks might come to because the price of a bowl of cereal with milk and with fruit is less than a dollar.

“So you can imagine why a consumer under pressure might find that to be a good place to go.”

When asked if encouraging customers to eat cereal for dinner could “land the wrong way,” Pilnick said no. 

“In fact, it’s landing really well right now,” he stated. “Cereal for dinner is something that is probably more on trend now, and we would expect [the trend] to continue as that consumer is under pressure.”

“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,” the CEO said

Image credits: Etienne Girardet

A Kellogg ad from 2023, titled “Enjoy Kellogg’s® Cereal for Dinner,” shows the brand’s mascot making an entrance at a family home while members are gathered around the table considering dinner options.

“When I say cereal, you say dinner. Cereal!” the tiger says, to which the family members chant back. A chicken in the background is then told by the mother that it could “have the night off.”

“If you’re tired of cooking chicken over and over (and the kids are bored of eating it), we’ve got something you’ll want to try. Scratch that – NEED to try,” the video’s caption reads. “Turn off the stove, pop open the pantry, and pour your favorite Kellogg’s® cereal for dinner!”

“If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable,” he added

Image credits: Eduardo Soares

Prices for groceries and restaurants have skyrocketed since the start of the pandemic. In 2022, consumers spent 11.3% of their disposable income on food, the highest level since 1991, the Wall Street Journal reported last week, citing data from the US Agriculture Department.

Cereal prices increased by 28% since January of 2020, according to the Bureau of Labor Statistics. Kellogg raised prices by 12% in its latest fiscal year.

Food companies have elevated prices since the start of the pandemic as a response to higher costs for labor, ingredients, and transportation. Additionally, they’re not lowering prices because they don’t need to.

The interview clip has been circulating on social media, with many people describing Pilnick’s advice as tone deaf

Image credits: Naseem Buras

The interview clip has been circulating on social media, with many people describing Pilnick’s campaign as “tone-deaf.” Many argued that he wouldn’t follow his own advice, considering the low nutritional value of eating cereal for dinner.

“Greedflation is forcing families to make choices like eating cereal for dinner to save money,” someone wrote on X (formerly known as Twitter). “Kellogg’s CEO is bragging about it while they show the huge climb in corporate profits that helped create the problem in the first place. F— this sh–.”

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“He uses this as an opportunity to push his product,” one person said

@alitzahs This can’t be real. The CEO of Kellogg wants you to eat cereal for breakfast if you are struggling to afford food right now. The cost of living and food prices are through the roof and instead of talking about real life issues he uses this as an opportunity to push product. #greenscreenvideo ♬ original sound – Alitzah

The company reported $651 million in net sales as of December 30, the end of the last quarter.

“This is what [companies] think of you,” one TikTok user wrote, while another commented, “#CorporateGreed.”

Someone else spoke from experience: “As a college student who has eaten cereal for dinner….it does not fill you.”

“Cereal ain’t even cheap anymore & you don’t need that much sugar b4 bed,” a separate individual said.

Another person wrote: “Meanwhile, he’s eating at 5 star restaurants every night and when he isn’t, his personal chef cooks him dinner. Absolutely disgusting.”

“I’m not about to start eating mountains of sugar and carbs for dinner,” one person wrote

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