Taco Bell goes for Cap'n Crunch

Taco Bell restaurants announced Friday the testing of a new co-branded breakfast item featuring Quaker's Cap'n Crunch Berries cereal. The trial is currently underway in Bakersfield, California, and if it goes over well the chances are good we'll see it spread elsewhere. These "Cap'n Crunch Delights" are deep-fried donut holes stuffed with icing and rolled in the cereal, and will be available all day.

Certainly this is a novel addition to Taco Bell's menu, and perhaps it represents some out of the box thinking at Quaker as a way to strengthen brand awareness. This could be the type of innovation cereal companies need to try to keep relevant, bolster traditional cereal sales, in a marketplace that seems to shrug with indifference over the typical breakfast fare.

(Source: Nation's Restaurant News)

Color-changing cereal

Innovation is critical for the cereal industry, but when is it just plain gimmicky? Researchers have developed a way to make breakfast cereal change colors once it comes in contact with milk. Quaker Oats owns the patents for the technology.

Sounds like fun, and would certainly catch people's attention. But would it be enough to lead a sustainable cereal brand?

(Source: The Guardian)

What's up with Quaker?

Yesterday I reported on some packaging updates from Quaker, plus one new cereal. That was pretty significant, but now I discover that there is more!

Four other new varieties have been spotted in the wild, including three new Life offerings, two of which are somewhat unusual for the brand.

The new varieties are: Maple & Brown Sugar Life, Apple Cinnamon Crunchtime Life, Strawberry Crunchtime Life, and Honey Nut Oatmeal Squares. Watch for them!

So, what's up with Quaker? That's a lot of change all at once. Maybe this thrust is a sign of their intent to ramp up their position within the cereal market. Whatever it is, it is rather impressive.

New looks at Quaker

Recently I highlighted some new developments from Kellogg and General Mills plus ownership changes coming at Post. Now, Quaker is making the news to begin 2012. Although I haven't seen any news releases or any changes showing up on their website yet, evidence is starting to appear in grocery stores. It appears that most of Quaker's leading cereal brands are going through some significant packaging design changes. Life is getting a fresh new look that is simple but stands out among the competition with its contemporary design. Also, notice that Quaker logo itself on the package is highly refined, giving a look that reinforces the company's heritage. I've also seen some images of some other re-designs, includes Quaker Oatmeal Squares. Packaging is one way for companies to carve out their identity and market position, and this is one of the most impressive design updates I've seen in the cereal industry.

Also, I spotted a new cereal, Whole Hearts. Essentially this is Quaker's version of Cheerios (although it claims to be "lightly sweetened"), but instead of just copying it like all the generic brands have, it comes in heart-shaped pieces with a much clearer message of the heart benefits of oats. Good move from an oats-driven company.

Halloween cereal

Halloween and cereal are a perfect fit, and a number of companies have taken advantage of the marketing opportunities over the years, and none more than General Mills. Again, this year, they released their monster cereals in time for Halloween, but they were largely unchanged in box design from 2010. Several other children's-oriented cereals feature similar seasonal graphics again this year.

But, in my opinion, the award for the best Halloween cereal for 2011 goes to Quaker for the introduction of Halloween [Cap'n] Crunch. This is a unique, limited-edition cereal that should provide the most breakfast fun this year.

And the milk turns green!

The Cap'n is alive and well!

Cap'n Crunch has been getting lots of attention recently, partly because of the recent social media blast by the Giant Steps. But things really heated up this week when a Daily Finance article speculated that the Cap'n might be heading into retirement, indicative of the inattention he has received from Quaker.

But, the word today is that the Cap'n is in good health and should be around for awhile. Quoted in AdAge, Quaker said that "Reports of Cap'n Crunch's demise are greatly exaggerated". In fact they have launched an official Facebook page, but were quick to point out that they are targeting "adult consumers". (See my previous stories on cereal and cartoon characters).

All of this publicity for one of their brands has to be a pleasant surprise for Quaker, unless they were really trying to eliminate a cereal icon!

Technorati Tags: cereal, Cap'n+Crunch, Quaker, breakastbowl

Finding the Cap'n

Last month I reported on an attempt by independent fans to bring Cap'n Crunch to social networks such as Twitter. Typically, many grassroots movements like this die after their initial burst of enthusiasm. But, Where's the Cap'n is growing with a concerted push by its creators, especially in recent days. Their goal of reaching 1000 followers on Twitter is being encouraged with the giving away of a FlipHD Cam once they reach the magic number, and every multiple thereafter.

This is getting serious. All from two guys, Michael Gutweiler and Corey Smale, who started this campaign because of their passion for Cap'n Crunch cereal and discovered that Quaker had no social networking presence for their hero. Gutweiler and Smale run "the Giant Steps", a Chicago-based marketing agency, and decided to start it themselves. They told me they are "having fun with it right now", but it certainly has the potential to bring greater exposure to their own business. But, they seem content to allow Quaker to respond by giving the Cap'n his own long overdue "official", online presence. But, so far the company has stated that they have no plans to do so, even though the Giant Steps has offered their help.

This is an interesting story as it shows the loyalty and passion that many consumers have for their favorite brands. Quaker is missing an incredible opportunity to capitalize on the love of Cap'n Crunch by a significant number of people. Will Quaker respond, or will they just let this party go on by itself? And, will other companies see the possibilities they might have to strengthen relationships through their brands? Some candidates could include Post with Fruity Pebbles; General Mills with Lucky, Trix, or the three monsters; and Kellogg with Tony.

This will be fun to watch!

Technorati Tags: cereal, Cap'n+Crunch, Quaker, Twitter, social+networking, breakfastbowl

Big and Small, no Middle?

Financial services company Credit Suisse, after analysis of the cereal industry, projected this week that the two leading cereal companies, Kellogg and General Mills, are expected to grow, mainly at the expense of Quaker Oats and Post. The latter companies "are facing structural challenges" that make them vulnerable to the much stronger corporations.

This seems to be an ongoing trend toward bifurcation, not only in the cereal industry but across a wide range of sectors. In other words, the future for cereal appears to be in the large corporations targeted in the mass market, and smaller, start-ups that can respond quickly to emerging trend and niches. The ones that will struggle are the companies in-between who do not have the same clout as the mega-companies or the innovation of the smaller ones. While Post (Ralcorp), Quaker, and Malt-O-Meal are all still in the game, within a shifting economy will they be able to find their place, not only in brand positioning but in their own financial sustainability?

I believe the next few years will reveal the answer.

(source: Barron's)

Technorati Tags: cereal, Kellogg, General+Mills, Post, Quaker, Malt-O-Meal, bifurcation, breakfastbowl

What's up with oatmeal?

I've been noticing a rising trend in the last couple of years, and even more so in recent months: There seems to be a resurgence of interest in cooked oat cereals. Walk down any cereal aisle and you will notice that the selection of instant oatmeals is quite significant.

Years ago preparing oatmeal from scratch using oats, especially from Quaker, was a morning staple. The advent of prepared, cold cereals has obviously changed things for the majority of people. Could it be that in the midst recession or because of a desire for things more natural that porridge in general, and oatmeal in particular, are "hot" commodities?

For a number of years now Quaker has offered convenience through its Instant Oatmeal products. Quaker certainly dominates the market as in most consumers' minds they own the word "oats". But, others are recognizing the opportunity and getting into the action. Some are obvious, like Kashi. But there are newcomers to the market place as well. These include smaller, niche companies that are focusing on being natural, such as Pro Oats and Umpqua Oats. Even cranberry specialist, Ocean Spray, has a new line of instant oatmeal. And, the company that seems to be shaking things up right now is Better Oats, a newcomer that is gaining considerable traction with almost 30 varieties covering a range of preferences and styles. Some of the innovative flavors include dark chocolate and chai spiced.

Could it be that consumers are looking for a change, and that this could continue to be a growing market? What do you think?

UPDATED 11/7/10: Some additional evidence: http://www.foodproductdesign.com/news/2010/10/oats-driving-breakfast-cereal-launches.aspx

Technorati Tags: cereal, porridge, oats, oatmeal, Quaker, Kashi, Pro+Oats, Umpqua+Oats, Better+Oats, Ocean+Spray, breakfastbowl

Quaker tries value

Perhaps a sign of the economy, Quaker appears to be test marketing $1.00 packages of cereal. Spotted at several Walgreen's these small boxes may be intended for those short on cash, but their size does also make them convenient for traveling, etc. Of particular interest, it is the first I've seen Crunch Treasures, a new Cap'n Crunch variety with 1/2 the sugar.

Technorati Tags: cereal, Quaker, breakfastbowl

Quaker goes vintage

Add a fourth cereal company trying to tap into the nostalgic sentimentality of consumers. According to several reports on cerealbits.com vintage-looking boxes of Cap'n Crunch and Crunchberries are showing up in some stores. UPDATE 8/31/10: There is also a Peanut Butter Cap'n Crunch box.

This is a great fit, because Cap'n Crunch is truly a classic from childhood!


Technorati Tags: cereal, nostalgia, Capn+Crunch, breakfastbowl

Crazy lawsuits

I've highlighted cereal-related lawsuits before, but usually these had more substance to them then this latest nominee for the Ridiculous Hall of Fame.

A California man launched lawsuits against Kellogg and Quaker for alleged deception in marketing Froot Loops and Crunchberries, respectively, as fruit-related cereals. Much to everyone's surprise, apparently neither of these cereals actually contain real fruit. We are all shocked!

The Froot Loops suit was dismissed, but the case against Crunchberries is moving forward. Maybe it will finally end stupidity across our country.

Not likely. We still have frivolous lawsuits.

Source: SFWeekly

Technorati Tags: cereal, lawsuits, Kellogg, Quaker, breakfastbowl

Cereal and common sense

The U.S. is known for frivolous lawsuits, and a recent one involving cereal proves the point. A woman filed a complaint against PepsiCo (owners of Quaker) for misleading consumers with its Cap'n Crunch's Crunch Berries. Apparently this cereal does NOT contain real fruit!

Fortunately the U.S. District Court dismissed the case citing the role of "personal responsibility and common sense".

What's next? Maybe somebody will discover there's no fruit in Froot Loops!

(Source: Lowering the Bar)

Technorati Tags: cereal, lawsuits, breakfastbowl

Quaker finding a way to take off?

The rough economy is forcing people to reconsider their behaviors and buying patterns, and as I have previously pointed out, this includes the role of breakfast cereal. The companies that succeed in this time will understand this and respond to it.

Quaker Oats may be one of the wise ones. They have recently launched a new marketing campaign that reinvigorates interest in their foundational product, which typically doesn't have the appeal of the more flashier cereals. They are doing this not simply by praising the economics of cooking your own oats for breakfast, but with a "Go humans go" theme that emphasizes its sound nutritional value.

Value. Just what consumers are looking for today.

New York Times article

Technorati Tags: cereal, Quaker, marketing, breakfastbowl

Cereal with a conscience

Corporate philanthropy is not new, even for cereal companies. But, here's one worth noting and is in line with the company and its products.

Quaker Oats has announced a partnership with Share Our Strength (a non-profit organization) with the goal of donating one million bowls of oatmeal to help end childhood hunger in America. Besides being a good public relations move for Quaker it can make a difference for families who need it.

More information and get involved at: www.startwithsubstance.com

Technorati Tags: cereal, Quaker, Share+Our+Strength, hunger, breakfastbowl

Hot cereal anyone?

With the growing trend of consumers toward natural products, hot cereals appear to be making a comeback. The simplicity of porridges are in stark contrast to the highly processed ready-to-eat cereals that dominate the market. The New York Times recently picked up on this with an article that highlights how Quaker is getting back to its roots by marketing hot cereals, specifically its new Simple Harvest line.

While cold breakfast cereals have an edge in convenience, the return to hot cereals are a trend worth watching.

LINK

Technorati Tags: cereal, Quaker, breakfastbowl

More chocolate

Recently I reported on Kellogg's European introduction of chocolate All-Bran (which I found bizarre).

Well, chocolate lovers, the trend will continue to grow. You will no longer be limited to kid's cereals like Cocoa Puffs or Count Chocula. Soon, a whole new breed of "healthy" chocolate cereals will be hitting the store aisles.

According to articles in Brandweek and Marketing Daily we can look forward to such innovations as Quaker's Life Chocolate Oat Crunch and Kellogg's Special K Chocolately Delight.

All in an attempt to boost sagging sales.

At least these new offerings sound better than Chocolate All-Bran!

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Technorati Tags: cereal, chocolate, Kellogg, Quaker