How Kellogg’s food is made, developed and sold
Hi we are Year 6 students from St Christopher's learning about Rice Bubble's packaging. We have a few questions for you. How is it shipped to stores? What does the product cost in stores? Where is it stored before being shipped? What machines do you use to create its packaging? What costs were involved in the making of this product? We hope you can answer our questions - Sienna, Emily (Who loves your cereal) and Bethany, Sydney, New South Wales
Hi girls. This sounds like a great project! You certainly came to the right place to ask you questions.
When Rice Bubbles come off the production line, they are packaged and then stored in secure, temperature controlled warehouses before shipping. Rice Bubbles are shipped to stores by a fleet of delivery trucks that pick up our cereal boxes from our warehouses in Botany and Perth and whizz across the country to deliver nationwide.
We don’t actually make the packaging ourselves, we have a specialist packing company that prints and cuts our boxes. They get delivered to us flat packed and we pop them up, fill them, seal them and send them to the warehouse for dispatch.
We give the stores a guideline RRP (Recommended Retail Price), but the stores are allowed to choose their own selling price. Our RRP for Rice Bubbles is $3.79 for the 250 gram box and $6.99 for the 705 gram box. The price varies because different stores have different overheads and expenses to consider. There are many costs involved, including: developing recipes with our nutritionists; sourcing ingredients; designing our packaging; running our factories; arranging deliveries – not to mention advertising and marketing, and point-of-sale materials – the information you find by our products in the supermarkets.