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.