Business briefs: Kellogg reports cereal slump
NEW YORK – Special K can’t seem to shake its outdated image among weight watchers.
Kellogg said Thursday its U.S. cereal unit suffered another sales decline in the fourth quarter, hurt by the performance of its top moneymaker, which over the years has branched out into an array of products including bars, crackers and chips.
During a conference call, Kellogg CEO John Bryant noted weight watchers are no longer as focused on “holding back calories” and instead want foods that make them feel good about themselves. That has hurt Special K, which is known for its “Special K Challenge” that debuted more than a decade ago and promised people would be able to shed pounds by replacing breakfast and lunch with bowls of the cereal.
Bryant said Kellogg’s problem is that it was “basically asking people to deprive themselves” with the challenge. Moving forward, he said, the company will change the way it markets Special K, and noted a new gluten-free variety of the cereal intended to be more in line with prevailing trends.
For the quarter, the Battle Creek, Michigan-based company said sales of U.S. breakfast foods declined 7.7 percent.
Norwegian-American weekly’s future in doubt
SEATTLE – The last Norwegian-American newspaper told readers it might close this month after 125 years of publication in Seattle.
But Norwegian American Weekly editor Emily Skaftun announced Wednesday she’s confident the publication will stay alive for the “foreseeable future.”
Skaftun said two potential buyers, who would purchase it from the Norwegian American Foundation, have made the publication comfortable enough to keep publishing.
‘Legacy’ Facebook control
NEW YORK – Facebook is giving more options to decide what happens to users’ accounts after they die.
The world’s biggest online social network said Thursday it will now let users pick someone who can manage their account after they pass away. Previously, the accounts were “memorialized” after death, or locked so no one could log in.
Beginning in the U.S., Facebook says users can choose a “legacy contact” to post on their page after they die, respond to new friend requests and update their profile picture and cover photo. Users can also have their accounts deleted instead.
Facebook also ensures that the account of a user who died doesn’t show up as a “suggested friend” or in other ways that could upset the person’s loved ones.
U.S. economy grows slightly
WASHINGTON – U.S. retail sales fell sharply last month as gas prices plummeted and auto sales slowed. But excluding those volatile categories, Americans stepped up their spending a bit.
The Commerce Department said retail sales dropped 0.8 percent in January, following a 0.9 percent decline in December. The dollar value of gas sales plunged 9.3 percent, the largest drop in six years. Auto dealer sales also fell for the second straight month.
Outside those categories, sales increased 0.2 percent after a flat reading in December.
The modest gain suggests Americans are still cautious about spending their windfall from lower gas prices, which economists expect will save the typical family $750 this year. Cheaper gas and strong hiring have sent consumer confidence to seven-year highs, a sign spending should pick up soon.