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Bloomberg reports that Kellogg Co. is planning to start a subscription snack service that would essentially disintermediate traditional retailers.

According to the story, "Kellogg has assembled a team and invested capital to create the direct-to-consumer food business."

Bloomberg notes that the new service would be similar to the recently discontinued Nibblr subscription snack business that was launched by General Mills, which itself was similar to the UK's Graze business that recently expended to the US. Graze allowed customers to use a website "to customize snack boxes featuring individual portions of nuts, dried fruits and other items. Graze sends $6 boxes by mail once a week, every other week or monthly."

Kellogg said it was premature to discuss details at this time.
KC's View:
Two important trends at work here. One is the idea of a subscription service, which, despite a spotty history, as a lot of potential. (Just ask Amazon about Subscribe & Save.) The other is the disintermediation of traditional retail, which I think continues to be a threat to a lot of companies as manufacturers look for ways to circumvent a part of the supply chain that sometimes can be a colossal pain in the neck.