K - Kellogg loses court case in UK over sugary cereal rules

Kellogg Company ( NYSE: K ) lost a legal challenge in the UK when a British court rejected its claims that the government's formula to measure the nutritional value of cereals is wrong.

The food company was trying to argue that UK's Department of Health and Social Care did not factor in the nutritional value of milk when setting its rules on cereal.

Judge Thomas Linden called the suggestion surprising that products like Coco Pops, Frosties and Rice Kripsies should not be regarded as less healthy products because of the nutritional value of the milk with which they may be consumed. Linden said the public health case against Kellogg was compelling and proportionate.

The ruling means that foods deemed high in fat, sugar or salt will be banned in October from prime spots such as checkouts, store entrances, aisle end caps, and with their online placements.

"While disappointed with this judgement, we respect the decision of the Courts and do not intend to appeal," stated a Kellogg spokesperson on the decision.

Shares of Kellogg Company fell 1.49% premarket to $70.71 vs. the 52-week trading range of $59.54 to $75.56.

For further details see: