LONDON (AP) — Breakfast food giant Kellogg Co. lost a legal bid Monday to block new anti-obesity measures in England banning the promotion of sugary cereals.
The U.S. company that makes Coco Pops, Frosted Flakes, Frosties and Rice Krispies had challenged the U.K. government over regulations taking effect in October restricting the promotion of foods high in fat, sugar or salt.
A High Court judge rejected the company’s argument that the regulations don't take into account the nutritional value of milk added to cereal.
Judge Thomas Linden said that mixing a breakfast cereal that's high in sugar with milk does not change the fact that it's high in sugar.
Kellogg's argument that its cereals like Crunchy Nut Clusters and Milk Chocolate Curls “somehow become healthy products if they are consumed with milk is wholly unconvincing, as the addition of milk does not alter the nutritional profile of the products themselves," the judge wrote.
Under the regulations, unhealthy foods will be banned from high-profile locations in supermarkets such as checkouts, shop entrances and aisle ends. There will also be restrictions on how they're displayed in online supermarket search results. More rules taking effect next year will ban buy one, get one free offers and other multibuy promotions.
Kellogg U.K.’s managing director, Chris Silcock, said the company is disappointed but doesn't plan to appeal.
“By restricting the placement of items in supermarkets, people face less choice and potentially higher prices," he said, urging the government to rethink the regulations amid a cost-of-living crisis.
Before you consider Kellanova, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kellanova wasn't on the list.
While Kellanova currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Which stocks are hedge funds and endowments buying in today's market? Enter your email address and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying now.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.