Wednesday, March 25, 2015

Kellogg looking to Origins

In the last few years much attention has been given to the decline in breakfast cereal sales, a point highlighted on this blog from time to time (but not nearly in keeping with the increasing hype this story is getting across the general media). The big companies are especially feeling the pressure, with much of the recent attention given to Kellogg and their almost 5% drop in breakfast food sales.

Kellogg and the others know that they cannot rely just on the same old formulas and strategies that worked in the past. Innovation is needed, but unfortunately is often coming from other players in the industry. With the announcement of their dismal financial results last month big K also revealed that their next attempt to get back on the growth curve is to launch mid-year a new cereal brand called Origins. The focus of this brand will be wellness and "real food prepared simply". The cereals, granolas and mueslis will have no preservatives, artificial colors or flavors, and will be packed with whole grains and fibers.

Of course, at first glance this hardly sounds new. Healthy cereals? Aren't there tons of them in the market? Yes, but there is a noteworthy difference here. Most of the cereals claiming to be natural and super healthy are under the names of smaller brands, even though two of them (Kashi and Bear Naked) are owned by Kellogg itself. This new line will prominently indicate that it is from Kellogg, and that could be the start of a deliberate campaign to change consumers' perceptions about what Kellogg stands for. If these cereals take off, the company could become known as a brand to trust, not just one of the mass-marketed cereal companies delivering the typical fare.

This could be the last real chance for Kellogg to get it right. We will have to see how consumers respond to a return the company's Origins.

(Source: BakeryandSnacks.com)

1 comment:

komal singh said...

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