Thursday, October 18, 2007

Rapid cereal growth in India

Cereal companies may be having problems in North America, but there are tremendous opportunities in emerging markets like in Asia. The Economic Times has a fascinating article on the breakfast cereal industry in India, where sales are increasing 30% per year.

But this new market is no guarantee of success for the big players. Kellogg faltered early on in India for not recognizing unique cultural preferences (e.g. they like cereal with warm milk). A local company gained ground by creating a cereal that didn't get soggy in warm milk, and therefore attracted consumers.


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