Saturday, June 29, 2013

Is the future hot?

The western United States, where I live, is in the midst of an extreme heat wave. So, talking about "hot" may seem appropriate, except when it comes to cereal. Hot cereal is much more suitable topic for the middle of January!

Nevertheless, Kellogg recently announced a new sub-brand within its rapidly expanding Special K line of cereals and weight conscious products. Nourish is a line of hot cereals and bars "specifically designed for people who are seeking positive nutrition to help manage their weight". Although I thought this is what Special K was trying to accomplish all along, it appears that this new offering ramps up the nutrition even more. Of particular interest are the three hot cereal varieties: Cranberry Almond, Cinnamon Raisin, and Maple Brown Sugar. This is the first time in years that Kellogg has attempted a hot cereal.

While there is a niche market for hot cereals, the trend over the years has been away from this. They are generally not as convenient and sometimes, especially in the case of oatmeal, have a reputation of being mushy. Nevertheless, porridge is a perfect comfort food, especially in colder weather.

The question here is: Is there growth potential for hot cereals? Kellogg must think so to a certain degree. Could hot cereals done right be a innovative growth engine for cereal companies?

Let's talk about it more once this heat wave passes!

No comments: