Thursday, May 24, 2007

Imported cereal

For the most part breakfast cereal in North America is manufactured and distributed here. But, like everything else, globalization is changing things. Could cereal be next? This would definitely put pressure on the big cereal companies, forcing price wars, etc.

I was in my local grocery store today and saw cereal imported from Argentina, but packaged for the U.S. market. "Global Brands" produces several knock-off varieties of popular favorites like Corn Flakes and Froot Loops. The packaging was less than impressive with thin cardboard, off-color photos, and amateurish graphic design.

Why would people buy these? Price. 98 cents a box. It obviously targets the low-end sector of the market, but still it is one more pressure that the cereal companies don't need. Or, maybe it will force them to compete even more with innovation.

We'll keep watching.

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1 comment:

Anonymous said...

Except for one local brand (unknown even in Vietnam!) all the cereal here is imported. We get it from the USA, Korea, Thailand, France, Germany, Australia, Malaysia, and Japan.