February 8, 2017 / 9:56 PM / 6 months ago

BRIEF-Kellogg Co will begin to exit its direct store delivery network in Q2

2 Min Read

Feb 8 (Reuters) - Kellogg Co :

* Kellogg Co - will begin to exit its direct store delivery (dsd) network in Q2

* New model "will be transformational" for Kellogg, reducing complexity and cost structure

* Kellogg Co - transition from DSD network will be complete in Q4 of 2017

* Kellogg Co - company is providing severance and benefits, as well as offering retention packages for impacted employees

* Kellogg Co- moving to warehouse model will also allow company to reduce complexity and bring benefits to both retail partners and Kellogg

* Initiative will be part of an expanded project K program

* Company expects initiative to bring U.S. Snacks' operating profit margin in line with that of Kellogg North America

* Kellogg Co - "after a transition period, company expects this initiative to contribute to accelerating its top-line growth over time"

* Kellogg - transitioning dsd-distributed portion of co's U.S. Snacks business to warehouse model used by pringles, rest of its north american business Source text for Eikon: Further company coverage:

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