Kellogg predicts Eggo waffle shortage next year
ATLANTA - Kellogg Co., the largest US maker of breakfast cereals, says flooding at an Atlanta facility and faulty equipment under repair at a Tennessee factory will cause Eggo waffle shortages through the middle of next year.
The scarcity was triggered by September’s floods in the Southeastern United States, which temporarily closed the Atlanta factory, as well as by equipment problems at the company’s largest waffle plant, in Rossville, Tenn., spokeswoman Kris Charles said yesterday in an e-mail.
“We are working around the clock to restore Eggo store inventories to normal levels as quickly as possible,’’ Charles said in the e-mail.
Kellogg said it doesn’t expect the shortage to have a “material impact’’ on earnings. The Battle Creek, Mich.-based company does not provide sales figures for specific brands.
The temporary supply disruption contributed to the 3 percent sales decline in the North American frozen and specialty channels unit last quarter, Kellogg chief executive oficer David Mackay said on an Oct. 29 earnings conference call.
Kellogg rose 41 cents to $53.37 at 4 p.m. in New York Stock Exchange composite trading yesterday.
The shares have gained 22 percent this year.