Tuesday, August 11, 2009

The Cereal Index: Is the economy turning around?

As I pointed out at the end of 2008 the recession impacts spending habits, including down the cereal aisle. Discount brands tend to do well when people are watching where every penny goes.

In recent months there have been signs that the economy is improving. And the unofficial, and purely hypothetical, "cereal index" seems to  confirm that. Kellogg recently posted double-digit quarterly growth, and CEO David Mackay confirmed the principle of the "cereal index", noting that retailer branded products are not selling as quickly as they were. (source Australian Food News) That is obviously good news for the big cereal companies.

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Saturday, August 01, 2009

Cheerios and cholesterol - Take two

Only just months after the FDA reprimanded General Mills for cholesterol reduction claims with Cheerios, the company has turned up the heat, now claiming that "Cheerios can help reduce cholesterol 10 percent in one month". New boxes are beginning to appear in supermarkets boldly stating the claim, and a special website is devoted to the message.

This all comes as a result of a clinical study released in April by Provident Clinical Research that revealed these results.

There is no word as to whether the FDA will be content with this new health claim.

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