A battle is brewing between cereal maker Kellogg (K – NYSE) and the social media world – and it could have a future impact on the share price of K.

Here’s a refresher…

In an interview with CNBC last month, Kellogg CEO Gary Pilnick suggested that inflation-strapped consumers should resort to eating cereal for dinner.

He said…

“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure. If you think about the cost of cereal for a family versus what they might otherwise do, that’s going to be much more affordable.”

As you can imagine, this tone-def comment quickly lead to outrage – as consumers pointed out that K has raised its own prices in recent years.

The Minneapolis Star Tribune reported that the price per unit of Kellogg’s products was up by +17.1% in October compared with the same month a year earlier. The highest increase was among ready-to-eat cereal brands.

In response, a 3-month boycott of Kellogg’s products has now been organized on TikTok.

The boycott would run from April 1st to June 30th and calls for customers to purchase products from other companies in order to send Kellogg’s a message during the second quarter of its fiscal year. They’re also demanding that Kellogg’s lower its prices.

One Tiktok user said…

“There’s no reason for you to jack up your prices the way you did, except to screw us. And you know what? Now we’re going to screw you – while eating some other brand’s cereal.”

Another said…

“Inflation has continued to rise year over year over year, and they continue to do nothing about it. Now Kellogg’s CEO wants to tell us, ‘Oh, you can’t afford dinner, that’s OK, just buy Frosted Flakes and you’ll be all right.”

YOUR ACTION PLAN

Could this April social media boycott impact the value of K stock? Very possible – but Wall Street would need to see a true impact of the boycott before the stock would move down.

However, if this boycott gains traction – and media exposure – then it could turn into a PR nightmare for K, so it bears watching.

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MONDAY MARKET MINUTE

• Apple and McDonald’s bounce back: Both APPL and MCD were up on Friday – which I believe should continue to extend heading into April. We’re positioned for a move. Tracking.
• It is (Finally) time for gold: With gold still rising, I’d like to stay on the NUGT train. The far-reaching cell phone outage last month is now triggering “end of time” fears – which is why the likes of Mark Zuckerberg and other millionaire Doomsdayers are now prepping by hoarding gold. We’ll be prepared if a surge comes.
• Preparing for a dip: If the markets DO decide to pull back, we rolled our SDS hedge into April – so we’re ready for anything.
• The “Amazon of Latin America” brings an opportunity: MercadoLibre (MELI) shares are expensive, but after a -10% earnings drop, it could set up nicely for a call spread. The so-called “Amazon of Latin America” has 218 million users – which if they all lived in one country, that combination of Brazil, Argentina, and Mexico would make it the most populous in all of Latin America. This could be a prime opportunity for a call spread strategy.