CEO’s Disastrous CNBC Interview Sparks Anger and Boycott Threats
3/1/24 – – Historians are doubtful that Marie Antoinette actually said “let them eat cake” when informed during the French Revolution that her country’s poor were unable to afford bread. But there’s absolute certainty that WK Kellogg Co. CEO Gary Pilnick said this about inflation-riddled Americans during an interview last week on CNBC:
“Cereal for dinner is something that is probably more on trend now, and we would expect to continue as that consumer is under pressure.”
Negative reaction to Pilnick’s “cereal for dinner” suggestion was immediate and intense. Here’s a sampling of headlines that have appeared all over the world:
“Kellogg’s Millionaire CEO Dragged for Saying Poor Families Should Eat Cereal for Dinner to Save Money” (MSN.com)
“Let Them Eat Flakes: Kellogg’s CEO Says Poor Families Should Consider Cereal for Dinner” (The Guardian)
“Kellogg’s ‘cereal for dinner’ controversy and price increases spur calls for boycott” (Marketwatch.com)
I’m sure the company’s marketing and PR people welcomed the invitation for Pilnick to be interviewed on CNBC’s “Squawk on the Street” as a terrific opportunity to give good news to investors. The focus of the February 21 segment was a report in The Wall Street Journal confirming that consumers are spending more than 10 percent of their income on food, the highest percentage in 30 years.
With American families facing average monthly grocery bills exceeding $1,000, replacing foie gras with Froot Loops makes sense. At least that appears to have been the thinking at the company’s headquarters in Battle Creek, Michigan. After all, Kellogg’s “Give Chicken the Night Off” TV ad campaign had been running without blowback for more than a year.
What went wrong?
Pilnick’s comments came off as tone-deaf and condescending because he and his marketing team failed to adequately consider what I call the “Four Ms” of successful communication: Audiences found him to be the wrong messenger, with the wrong message, at the wrong moment, with the wrong motivation.
THE WRONG MESSENGER
Pilnick is not the best authority to give spending and nutritional advice to people struggling to make ends meet. In 2023 his compensation as CEO was more than $4 million. As one TikTok observer pointed out, “Do you think he’s feeding his kids cereal for dinner?”
As far as dietary recommendations, processed breakfast cereals are notorious for high sugar content and empty calories. At best, nutritionists include products like Frosted Flakes and Frosted Mini Wheats in a healthy diet if they are consumed in moderation. The “cereal for dinner” push runs counter to that advice.
Pilnick simply does not have the credibility or authority to present dietary or nutritional information.
THE WRONG MESSAGE
Kellogg’s “Give Chicken the Night Off” marketing campaign delivers a very different message than the one Pilnick advanced on CNBC.
The ads present cereal for dinner as a fun option for families — a way to liven things up. According to Kellogg’s research, 25 percent of cereal consumption already takes place “outside of the breakfast window.” I’m sure people in all income brackets have enjoyed Fruit Loops as a snack or even an occasional dinner at some point in their lives.
But having the conversation on CNBC in the context of inflation and strained consumer spending changed the focus from choice to sacrifice. Substituting Corn Flakes or Raisin Bran for protein at dinner because you can’t afford chicken, fish or hamburger meat is not an uplifting message to deliver. Positioning Kellogg’s products as cheap default options also risks damaging the brand.
THE WRONG MOMENT
This is an unfortunate time for any food marketer to jump into discussions about inflation, price hikes and “shrinkflation.” According to the U.S. Department of Agriculture, prices for food consumed in-home increased by 11.4 percent last year alone. And Kellogg has increased its pricing right along with every other brand found on grocery store shelves.
Talk about bad timing; On Monday, The Wall Street Journal took aim at processed food choices, including breakfast cereals, in an article headlined: “Melted, pounded, extruded: Why many ultra-processed foods are unhealthy.” The unappetizing story reported:
“A growing body of research suggests that the extent of industrial processing that your food undergoes can alter its effects on your body, determining its impact on your appetite, hormones, weight gain, and likelihood of developing obesity and chronic diseases.
The CNBC interview has placed Kellogg’s products in the center of that conversation. That’s not good news for the company or its investors.
THE WRONG MOTIVATION
Whenever you’re listening to a spokesperson, you ask yourself, “What’s his or her motivation — why is he or she telling me this?” CEOs appearing on CNBC programs are almost always promoting their company and products. They’re hoping the information they present will go over well with investors and help the performance of their stock.
It’s very hard for anyone to believe that a CEO doing an interview on CNBC is primarily motivated by concern for hard working Americans struggling with their food budgets. Pilnick’s cereal-for-dinner pitch offended people, coming off as commercial and condescending, not compassionate or empathetic.
That’s the level of perceived insincerity that creates anger and triggers boycotts.
So far, there has been no comment from Kellogg or Pilnick in response to the almost universal displeasure with his CNBC appearance. In this situation, figuring out what to say and where to say it — being more careful to analyze the Four Ms of successful communication — is not easy. But Kellogg has plenty of brand equity to support forgiveness, and I believe consumers and investors expect and deserve a response.
For Gary Pilnick to go back on CNBC, apologize and re-embrace the fun messaging of the far-less-offensive “Give Chicken the Night Off” campaign would be, in the words of Tony the Tiger, Grrreat!
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