Monday, October 30, 2017

Kellogg cleans up Corn Pops controversy

At a time when cereal companies are struggling to retain (let alone increase) market share, the last thing they need is bad publicity. Yet, this is what happened to Kellogg last week, when sharp-eyed, morning cereal box readers noticed something unusual on the back of their Corn Pops. The back panel of the box featured a cartoon with many Corn Pops characters, and standing out was one with a darker, brown complexion portrayed as a janitor. Quickly Twitter lit up as people took offense to the racial insensitivity of the artwork, seemingly playing on a stereotype that this is the type of work done by people of color. Embarrassed by the controversy, the company quickly responded on Twitter saying that "Kellogg is committed to diversity & inclusion. We did not intend to offend – we apologize. The artwork is updated & will be in stores soon."

The response was rapid and appropriate, but it really makes one wonder how something like this could get out to market as it did. Hopefully, a lesson learned.

(BTW, if you can find one, pick up one of these boxes. Recalled cereal boxes typically have significant value in the future).


Sunday, October 15, 2017

Is Post's lawsuit in the bag?

The cereal industry is struggling, and you know that desperation is in the air when lawsuits start flying. This is what happened just a few weeks ago when Post Consumer Brands sued General Mills for patent infringement of its bagged cereal displays.

Bagged cereals have become a big hit for Post, which now owns MOM, the maker of Malt-O-Meal cereals, most of which are brand-name knock-offs sold in large bags. Consumers have gravitated to these cereals because they are cheaper. And price is a big driver in the grocery aisle. General Mills, recognizing MOM's success, and probably frustrated by the attempts to copy some of their big names, decided to get in the game themselves, but with their genuine cereals sold in bags. The issue here is not the bags themselves, but the way they are merchandised. The suit claims that General Mills is using a "copycat merchandising system that imitates Post's innovative divider and merchandising system for bagged cereals." As you can see from the image here, included in the lawsuit, the presentation on the shelves is almost identical, pitting the big-name branded cereals against the cheaper imitations.

Imitation is sometimes considered the sincerest form of flattery, but in this case Post wants to protect something that is working for them. If the lawsuit is won, this would change the shelf displays, but I doubt that the bags themselves are going away anytime soon. We'll watch with interest.

(Source: Minneapolis StarTribune)

Wednesday, October 11, 2017

General Mills ramps up the winter cereal race

It's not only Gingerbread Spice Life that is catching people's attention as we get closer to winter. A number of sources recently revealed that General Mills will soon be making Cocoa Puffs and Lucky Charms available in limited edition varieties: Cinnamon Vanilla Lucky Charms and Hot Cocoa Cocoa Puffs. These will be available at Target, and should be fun comfort foods for the shorter days ahead. I'm sure we'll see others as well, including the annual appearance of Christmas Cap'n Crunch.

Further examples of how seasonal cereals are a great marketing strategy for cereal companies!