Cereal and the economy
The recent downturn in the economy seems to be affecting almost every industry, not just banks and auto companies. Although food in general is a staple, a prolonged recession will have an impact on consumers' choices and buying habits. This will include cereal.
Recently the big three cereal companies (Kellogg, General Mills, and Ralcorp [Post]) have shown positive financial results. But this reflects the past, not necessarily the present or the future. The question is: Will consumers continue to purchase cereal as in the past when their personal finances are squeezed?
It appears that even the big companies question this. For example, Kellogg recently launched a campaign on their website promoting the "value of a Kellogg breakfast", which costs less than 50 cents a bowl, including the milk. Obviously they wan to prevent any changes in perception.
Nevertheless, the big winners in the coming months could be low-cost manufacturers like Malt-O-Meal, whose sales continue to rise. In the end people will likely to continue eating cereal, but will find their satisfaction in bulk sizes, knock-off recipes, or generic brands. This will also be an opportunity for innovators, but not on the high-end. Companies that can bring new value to the cereal aisle have much to gain.
We'll keep watching these developments.
Technorati Tags: cereal, economy, recession, Kellogg, Malt-O-Meal, breakfastbowl
Recently the big three cereal companies (Kellogg, General Mills, and Ralcorp [Post]) have shown positive financial results. But this reflects the past, not necessarily the present or the future. The question is: Will consumers continue to purchase cereal as in the past when their personal finances are squeezed?
It appears that even the big companies question this. For example, Kellogg recently launched a campaign on their website promoting the "value of a Kellogg breakfast", which costs less than 50 cents a bowl, including the milk. Obviously they wan to prevent any changes in perception.
Nevertheless, the big winners in the coming months could be low-cost manufacturers like Malt-O-Meal, whose sales continue to rise. In the end people will likely to continue eating cereal, but will find their satisfaction in bulk sizes, knock-off recipes, or generic brands. This will also be an opportunity for innovators, but not on the high-end. Companies that can bring new value to the cereal aisle have much to gain.
We'll keep watching these developments.
Technorati Tags: cereal, economy, recession, Kellogg, Malt-O-Meal, breakfastbowl
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General Mills,
Kellogg,
MOM,
Post
A recent 
For many years General Mills has been known for its 
Just when you think you've had enough of politics, 
Following in the footsteps of German cereal innovator, 
While 
Coffee chain 
The 
How do you build on a successful brand?
One of my fascinations with cereal is how it has tapped into pop culture over the years. Kellogg's latest offering is a perfect example. They just released High School Musical cereal to coincide with the highly popular Disney TV film that has a strong following among a certain segment of young teens. The vanilla-flavored, star-shaped cereal looks disgusting, but the cereal is not what this all about. Currently, Kellogg seems to be doing the best job in tying into popular themes. Early this year this also released a Kung Fu Panda Crunchers cereal, and one based on the latest
This year I was intrigued with 
I've been 
Grocery giant 
Summer has been a quiet time in cereal world, but things have really heated up this week with the 
Food prices have been rising lately, and cereal has been 
Vintage cereal boxes are not new (
OK, they're not handing out boxes in the stores, but certain new cereals have a "Try FREE" banner on the top. You simply send in your receipt and a form from inside the box and they will send you a check for the amount. A creative way to get people's attention. But, like most rebate programs, the actual number of people who bother to send in the form will probably be low. Yet, it could be a good marketing investment for Kellogg.
I have to admit, this one caught me off guard. Post has recently relaunched Alpha-Bits cereal. What surprised me is that I didn't even miss them. Apparently this class cereal brand was taken off the market in 2006.
Sometimes all a cereal brand needs is a new angle.
Have you noticed how almost all cereal boxes on the front feature a picture of bowl with its cereal? Sure, the box contains what's depicted, but is it always necessary?
In the end is it cereal they sell or brands?
What's with Wheaties?
One of my favorite marketing blogs is 
I know the title is strange, but here's another cute example of brand extension. General Mills has licensed several of its brands to 
While both breakfast cereal and cereal restaurants have their origins in the U.S., they have global appeal. For example, 
Kellogg for example has the most extensive global operations. It is fun to visit the 
In recent years Kellogg has worked hard at building upon its current products and brands to retain customer attention and loyalty in a crowded marketplace. From a marketing perspective this is wise, but I question how long they can do this before they have diluted themselves?
But it's not only brands that Kellogg is extending. The products themselves are getting reused in new ways. They have just released Kellogg's Morning Jump Starts, a breakfast kit that contains cereal (Apple Jacks, Froot Loops, Frosted Flakes, Minii-Wheats or Rice Krispies) plus some other Kellogg product (like Keebler cookies or a Pop Tart), and juice. It's supposed to be a convenient meal-in-a-box, but I question whether its cost and excessive packaging are really that attractive, except for those parents way too busy to sit their children down for breakfast. But give them points for trying. I doubt, however, that this will catch on, except perhaps in the fast food restaurant industry. 
