Sunday, May 21, 2017

The expanding world of Post

When we think about the major players in the cereal industry, most of the attention goes to Kellogg and General Mills, the world's largest cereal companies. Beyond that are several other players, such as Post and Quaker, but these seem to pale in comparison. Or do they?

Post, in particular, is a dark horse that is quietly and quickly gaining momentum to be more than an also-ran, third place contender. Historically, Post was right there from the beginning as a rival in Battle Creek with the Kellogg brothers. Over the years, however, Post lost its edge, falling behind in the pack. Things have begun to change in the last decade after several ownership shifts and reorganizations. This included a merger with Ralcorp (i.e. Ralston cereals) and the purchase of Malt-O-Meal. Previously, Nabisco was incorporated into the company as well. Other brands in the Post portfolio include Better Oats, Mom's Best Cereals, and Peace Cereals.

Last month, another major milestone for Post was achieved with the takeover of U.K. cereal giant, Weetabix. Weetabix itself (i.e. a wheat and malted barely cereal) is somewhat obscure for most Americans, but is an icon in Britain. The purchase by Post not only gives the company a greater foothold in the U.K. market, but gives Post some additional opportunities in the U.S. In addition to Weetabix itself, the Alpen and Barbara's brands are now Post's as well. Post CEO Robert Vitale has said that with this acquisition, "it’s the right time to bring all our cereal brands under one unit." (Source: Food Business News) All of this means that Post's brand matrix is stronger and more diverse than ever. If carefully managed, this could further bolster Post ahead in an already tight cereal market and race.

The company could truly be poised to "be first past the post" (pun intended)!

Monday, May 15, 2017

10,000 boxes Lucky Charms marshmallows coming soon

General Mills' Lucky Charms is one of the best-selling cereals out there, and one of its most-loved features are the colorful marshmallows that accent the experience. It is not uncommon for people to eat the marshmallows only, or to consume the cereal pieces first in the bowl, saving the marshmallows until the end. General Mills' knows all this, and wants to capitalize on it.

A couple of years ago the company held a contest, where 10 boxes of marshmallow-only Lucky Charms were given awarded. Now, they want to play this up to a much bigger scale, with the plan to give out 10,000 boxes! Starting this month, look for specially marked boxes of Lucky Charms that will contain a special code printed inside the box. Visit their website, and if your code matches, General Mills will send you one of the rare, special boxes.

In the past, some have argued that Lucky Charms Marshmallows should be sold in stores, but this is far more valuable to the company. This generous offer creates tremendous buzz for Lucky Charms, and, at least in the short-term, will sell a ton of cereal as people frantically search to discover whether they will be the truly Lucky ones. Such brand energy is just what General Mills needs, and is one of the creative ways that cereal companies must come up with to restore the fun of breakfast cereal amid sagging sales.