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Report: Kellogg Considering Subscription Service

Kellogg Co. is reportedly working on a new subscription snack delivery service.

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Kellogg Co. is reportedly working on a new subscription snack delivery service.

Bloomberg reported Wednesday that the Battle Creek, Michigan-based cereal maker invested capital and assembled a team of employees to work on the project.

“We’re exploring new opportunities in many areas of our business, but it’s premature to discuss any details at this time," spokeswoman Kris Charles told Bloomberg.

Kellogg and rival General Mills hope to diversify their product offerings as consumers both move away from packaged foods and become more comfortable with online shopping.

General Mills, however, scrapped its subscription snack service last week.

Nibblr, launched by the Minneapolis-based company 18 months earlier, offered dozens of snack box options -- including nuts, fruits and other items -- that could be delivered to homes or workplaces on a weekly, bi-weekly or monthly basis.

Although officials from 301 Inc. -- General Mills' development arm -- said the "large scale test" provided valuable lessons, "we chose to focus our resources on other projects."

U.K.-based Graze.com is the most prominent operator in the subscription snack industry. After expanding across the Atlantic last year, its $6-per-box service helped generate $35 million in annual U.S. sales

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