Kellogg shrinks boxes of several cereal brands

GRAND RAPIDS, Mich. - It's a little less cereal for the same amount of money.

Kellogg Co. is using smaller packaging while charging the same prices for five of its cereals sold in the United States, effectively raising their prices for the second time this year. The company started shipping the new boxes to stores in early June.

Boxes were reduced by an average of 2.4 ounces for 14 items sold under the Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks brands, said Kellogg spokeswoman Susanne Norwitz.

"This price adjustment on select ready-to-eat cereal brands was taken to offset rising commodity costs for ingredients and energy used to manufacture and distribute these products," Norwitz said.

Kellogg increased prices in January in the low single-digit range, on a percentage basis, to offset higher costs, the Battle Creek Enquirer reported Tuesday. Its first-quarter profit still fell 2 percent when compared with the first three months of 2007.

The net result of the smaller boxes is a similar price increase, Norwitz said.

She declined to say whether the Battle Creek-based company will shrink the boxes of other cereals.

"We did an extensive analysis of all of our brands to determine what made the most sense for our business," Norwitz said.

Kellogg shares fell 82 cents, to $50.67 on Tuesday.

About a year ago, rival General Mills Inc., maker of Cheerios and Wheaties cereals, started selling its cereals in smaller boxes, at similar prices.

LINK