Sunday, July 30, 2017

The expanding world of cereal lines

Our recent report of interesting, new Post Shredded Wheat varieties was a good reminder of how the bulk of new cereals (not including limited edition one-offs) coming out today are extensions of existing lines. At one time, during cereals' heyday, almost every new cereal was launched as its own brand. Those days are long over, with very few new cereal brands introduced by the major players. In fact, when General Mills launched Tiny Toast last year they proudly claimed that it was the first new brand in 15 years, a position I challenged at the time. Interestingly, just a couple of months ago that experiment quickly ended, as the two Tiny Toasts were absorbed into the Toast Crunch line.

In many ways this makes sense, as people are less loyal to or interested in the cereal companies themselves, and it is difficult for new brands to stand out. Consumers gravitate to known and trusted brands, and line extensions are a convenient way for companies to introduce new cereals. If you want to make a chocolate flavored cereal, instead of trying to drum up a new brand, just piggy back on an existing one like Cheerios, or Shredded Wheat. It seems now that virtually every permanent cereal line has been extended to some extent, with some of the more notable ones being Cheerios (13 varieties), Honey Bunches of Oats (12 varieties), Special K (17 cereals plus other food products), and Chex (8 varieties). We also see special edition and seasonal cereals joining lines for a short period on such brands as Cap'n Crunch and Pebbles.

While we still have tons of cereal brands to choose from, in reality the number has basically levelled off. Instead, we have super-brands that dominate grocery store shelves and consumers minds. This makes it much more difficult for new brands to get noticed, but on the other hand, could be a tremendous opportunity for an exciting new brand that wants to disrupt the market.

Thursday, July 27, 2017

Post brings new life to a stodgy brand

There have been a lot of new cereals hitting the shelves in the past few months, as cereal companies try everything possible to garner attention. Some are more exciting than others, with the majority hardly likely to make much traction. But, another recent introduction has captured my attention, and this one also comes from Post. They have launched three new varieties of their Shredded Wheat line, one of the oldest cereal brands out there. Shredded Wheat whether as the original biscuit, or one of the Spoon Size versions, is hearty, healthy cereal; but not cereals that most consumers pay attention to.

The new Shredded Wheat cereals are frosted spoon size biscuits. On the surface, this might sound hardly unique, especially in light of Kellogg's highly successful Mini-Wheats line. But, Post (quietly and quickly moving to become the most significant cereal company) did not just to spit out another knock-off. The flavors are bold: cinnamon roll, mixed berry, and s'mores bites. And the packaging jumps off the shelf with color and energy. I am sure people will want to try them. I do!

If it is possible to make Shredded Wheat interesting, then anything is possible at time when the cereal industry needs some big wins.