Saturday, November 29, 2008

Big Cereal

As industries mature big companies emerge, controlling the vast majority of the market. But, these companies find it difficult to change when necessary and to innovate. The result is that new, upstarts show up on the scenes carving out new markets. You can see this in almost every consumer product, from automobiles to beer to pharmaceuticals. And, of course, cereal.

A recent blog posting by John Gapper of the Financial Times examines the current state of Big Cereal and how speciality brands are the ones taking the leadership on the high end of the market.

Some interesting quotes: "The Big Cereal innovation pipeline seems to be running dry... The industry is bifurcating between low-cost generics and high-priced speciality items, with the established mass products coming under strain in the middle."

Worth reading.


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