Kellogg’s CEO has suggested people should eat cereal for dinner to save money

Kellogg’s CEO has suggested people should eat cereal for dinner to save money.

Americans are currently spending more on food than they have in three decades, prompting Kellogg's CEO Gary Pilnick to propose a solution: have cereal for dinner. Pilnick made this suggestion during a recent TV interview, sparking a debate online.

During his appearance on CNBC's "Squawk on the Street," Pilnick argued for the affordability of cereal, stating that a bowl with milk and fruit costs less than a dollar. He suggested that consumers facing financial pressure might find this an appealing option.

When asked if recommending cereal for dinner could be perceived negatively, Pilnick responded, "We don't think so. In fact, it's being received quite positively."

He shared that Kellogg's data indicates cereal is not only the top choice for breakfast at home but also accounts for 25% of cereal consumption outside of breakfast, such as for dinner or a snack. Pilnick suggested that the trend of having cereal for dinner is likely to continue as consumers face economic pressures.

Although the price of cereals declined by 0.3% in 2023, it had increased in previous years, including a 6% increase for breakfast cereals in 2021 and a 13% increase in 2022, according to the U.S. Bureau of Labor Statistics' consumer price index.

However, cereals were not the only food items affected by recent inflation. Data from the U.S. Department of Agriculture shows that in 2023, the prices of fats and oils rose the most by 9%. Sugar and sweets increased by 8.7%, and cereals and bakery products by 8.4%. Some categories, such as beef, eggs, fruits, and vegetables, saw slower growth, while pork prices actually declined by 1.2%.

In 2022, U.S. consumers spent over 11% of their disposable income on food, whether at home or dining out, according to FDA data. By the end of 2023, consumers were paying nearly 20% more for groceries compared to 2021.

While inflation may be slowing down, food prices continue to rise, with grocery prices increasing by 1.2% annually and restaurant prices by 5.1%, according to the index.

Boston College economics professor Peter Ireland emphasized that food and energy prices have been rising faster than wages, particularly impacting those on fixed incomes. He noted, "If food