Fall in Operating profits.

 

 

There has been a reduction in the Underlying Operating Profits earned by Kelloggs Company. A reduction of $95milliion from 2011 to 2012 (Kellogg's Annual Report, 2012). Hence this is a weakness of Pringles, as the holding company has been affected.

 

Figure 1 shows an extract from Kellogg's financial report. (Kellogg's Annual Report, 2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low Product Portfolio

 

 

Pringles does have a range of flavors to choose from. However there is very low product selection for consumers as all products are potato based product. Hence undifferentiated products is a weakness of Pringles.

 

 

 

Unhealthy chemicals Presented - Acrylamide (C3H5NO)

 

 

Acrylamide is found in essentially all potato chips, it is widely considered to be a harmful, cancer-causing chemical, which makes potato chips one of the most toxic processed foods on the market. (Daily Health Post, 2013)                 Pringles as a potato chip certainly contains this harmful substance.

 

The solutions for reducing acrylamide in the potato chip has been an issue over the past years. The above statement taken from HEATOX Report evidences this fact.

 

“Currently doesn’t have an effective strategy for completely cutting acrylamide out of our food. In fact, even using all of our best technology, we are only capable of reducing acrylamide in our food products by 40%” (HEATOX’s report, 2011)

 

Hence this is a major weakness of Pringles as consumers would not like to consume such cancer causing foods.