Kellogg warns of hit to profit as workers' strike drags on

Kellogg Co warned a workers' strike at its U.S. cereal plants could dent annual profit as the Froot Loops maker braces for an end-of-year period likely to be impaired by supply issues.

A workers' union on Wednesday rejected a revised offer on pay and benefits from the U.S. packaged foods maker, extending a month-long strike of about 1,400 workers across its four cereal plants.

While Kellogg has been able to bring in temporary hires, the plants are not operating at full capacity, raising concerns among analysts that supplies of some of America's popular cereals could be constrained in the coming months.

"(Union members) are not willing (to) take any major concessions that Kellogg is proposing during a time of economic growth," Dan Osborn, president of the local union in Omaha, said on Thursday. Kellogg has pushed back against those claims.