Showing posts with label General Mills. Show all posts
Showing posts with label General Mills. Show all posts

Tuesday, December 12, 2017

General Mills looking for love

Maybe it's not big news, but in these challenging times for cereal companies, attempts to turn the tide are at minimum interesting. Last week General Mills unveiled a new (or at least updated) logo, the sixth in almost 90 years. Changing the corporate logo by itself is hardly going to really impact cereal sales, but it is a sign of how the company sees itself, and how it wants others to see it.

At first glance, the changes might not be apparent. The big "G," which has been at the core of the company's identity remains. But, added to that is a bright red heart, all accompanied by a new tagline, "Making Food People Love." 

Obviously, the slight modification is a direct, albeit subtle, attempt to tug at consumers' emotions, humanizing a large, global corporation. But, in the end, not much has really changed. I doubt, for example, that most people will even consciously notice the change. Branding and logo expert, Armin Vit, minimized the significance of the change, saying that "a heart, coming from one of the biggest companies in the world, feels so inauthentic. Even if they mean it — and I’m sure they do — it’s like, no, just be a money-making company and leave all of our collective feelings at the door."

I guess the test will be if more love finds it way to General Mills.

Tuesday, November 14, 2017

Cereal companies desperate to see what sticks

Although its hard to quantify, it certainly seems that 2017 could be one of the most prolific years ever (or at least in recent history) for new cereal introductions. A quick review of this year, reveals a plethora of new cereal brands and varieties, ranging from the usual infusion of new Cheerios to the reintroduction of classic Trix to the countless recipes brought out by smaller players. There are, in fact, so many new cereals coming out now that The Breakfast Bowl does not even bother to report on most of them, unless they stand out as truly unique or innovative. Quite frankly, most of the new cereals are quite boring and even predictable.

Why the recent surge in cereal introductions? In short, it's because cereal companies are desperate to find some new magic bullet that will help turn around overall slumping sales. The hope, of course, is that they will stumble across a brand or flavor that will go viral and boost sales revenues. So, they keep throwing stuff against the wall to see what sticks.

For consumers, and especially true cereal enthusiasts, this can be a fun time. The abundance of options fights against the boredom that has been growing for this food category. Sadly, however, many of these new products will never catch on, and will quickly disappear from the grocers' shelves, never to be tasted again.

Yet, there's more to come. Typically, the beginning of a new year, which is just around the corner, sees a number of cereal launches. We just came across one of these. A video from midwest grocer County Market shows a taste test of some supposed new cereals coming from General Mills in early 2018: Lucky Charms Frosted Flakes, Peach Cheerios, and a new flavored shredded wheat product called Shreds in peanut butter chocolate and Cinnamon Toast Crunch varieties. And, we are very likely to see Kellogg and Post pull out all stops as well with some great introductions.

What has been your favorite new cereal of 2017? What are you hoping for in 2018?

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)

Thursday, September 21, 2017

The Trix behind classic cereals

Big news in the cereal world today, as General Mills announced that they would be bringing back Trix with all the artificial flavors and colors you used to love, although no word yet on any change to the sugar content. It was just two years ago that General Mills announced the move to remove these artificial ingredients, as part of a longer trend of making their cereals more healthful. "Classic" Trix is not a limited time promotion, but will sit permanently next to the more tame, "natural" Trix on grocers shelves.

Obviously, the move to a greater health focus has a downside. In the effort to satisfy critics of highly sugared cereals targeted to kids, interest in these beloved breakfast brands has decreased. The newer Trix recipe is much more bland and less interesting, or "boring" as I called it in my review. Despite all the altruism, it was apparent to General Mills that people really want the bright and flavorful version embedded in most people's memories. In a time when cereal sales are sagging (evidenced by other news today that General Mills' profits have declined due to weaker cereal revenues), it was time to go back to what worked in the past.

The initial reaction by consumers has been extremely positive, although some hoped that the one-time popular fruit shapes would return as well, something that General Mills said may still happen. For cereal enthusiasts, this move today is very significant, and provides hope that the good old days of cereal fun may return. We have seen many examples before by General Mills and others of using vintage packaging to tap into nostalgia, and in some cases, successful cereals of the past have been reintroduced, such as Post's recent relaunch of Oreo O's. But, to go back to a previous, less healthy recipe, is largely unheard of. I have long held that reintroducing classic cereals could be a boon for cereal manufacturers, even if these were limited editions. Maybe today's move will inspire other reintroductions.

There is a problem, however. What if these classic recipes take off (as they certainly will), overshadowing their healthier shelf-mates? General Mills and others will have no business choice, but to keep the older formulas, and drop the less interesting newer varieties. In other words, this is the New Coke versus Classic Coke dilemma of the 1980's, but with cereal. The problem is that this puts General Mills back into the crosshairs of those who believe that highly-sugared cereal with artificial ingredients should not be sold, or at least not targeted to children.

No matter how the future unfolds, today's reintroduction of Classic Trix is a significant move in the ongoing cereal saga.

Wednesday, September 13, 2017

Technology to address sugar

Earlier this summer General Mills applied for a patent to reduce sugar in breakfast cereals, but without changing other important properties such as texture, appearance or bowl life. This is accomplished by coating the cereal in high-intensity sweeteners (i.e. maltodextrins, which are essentially short chains of glucose molecules).

The real point of this patent is not actually the technology itself, which, by the way, is fairly innovative. What matters are the problems that this solves. Consumers are wanting a reduction in sugar, but simply reducing the amount of sucrose creates its own issues. Obviously, less sugar means blander taste. In addition, the baked sugar in cereal is what gives it its crunch, brown color, and helps keep it from getting soggy. In other words, changing the recipe is not simple as it sounds.

Because of these extra properties that come from sugar, one cannot just use an alternative ingredient, such as an artificial sweetener (which has additional drawbacks for consumers) or fruit juice, etc. Again, you might help with the actual sweetness, but many of the other desirable properties will be compromised.

Food science may be one of the strategies that could help the big cereal companies address the needs and high demands of consumers, while maintaining a great breakfast experience. In this example, General Mills might just be on to something.

SOURCE: Food Business News

Thursday, June 22, 2017

Cinnamon Toast Crunch is Hitting the Road

We all know cereal sales have slumped. People are just not shopping the cereal aisle of the grocery store. So, what does a cereal company do? Go to the consumer.

General Mills announced today that they will be going on a road trip this summer with a portable Drive Thru promoting Cinnamon Toast Crunch, currently their brand getting the most creative marketing campaigns. This pop up pit stop is targeted to people on road trips, with the first one showing up this weekend at the Grand Canyon. Travellers can sample the cereal, which will include special recipe concoctions. While their press release does not explicitly say so, it sounds like we could see the big cereal box and milk carton in other prominent tourist locations across the U.S. over the next two months.

Again, General Mills has been doing some fun marketing with Cinnamon Toast Crunch, including a selfie spoon offer, among other things. While limited in scope and actual reach, campaigns like this can contribute to a greater brand profile and buzz. Interestingly, General Mills' European partner, Nestle, has also been experimenting with pop-up promotions in malls in Ireland.

So, watch for this new Drive Thru coming to a tourist trap near you this summer. Where would you like to see one?

Saturday, February 18, 2017

Is it time for hot cereal to be disrupted?



Over the past few weeks, several tips out of Canada (including a segment on NBC's Today Show) have revealed that General Mills is experimenting with some innovations to stodgy old oatmeal. For a limited time in the Great White North consumers can buy Lucky Charms Instant Oatmeal and Cinnamon Toast Crunch Instant Oatmeal. Pairing a traditional hot cereal with an irreverent, popular cold cereal brand is powerful. I am amazed no one has thought of this before.

For years I have been observing the slow, but growing trend toward oatmeal, and porridges in general. Hot cereal is a comfort food, and with the increased convenience factors (i.e. instant and single-serve packaging) offers a nutritious alternative to the typical cold cereals that dominate the marketplace. Already there are dozens of oatmeal brands readily available in the supermarket, and many more niche varieties as well.

General Mills told NBC that their Canadian experiment is an eight-week trial, and that "there are not any plans at this time to introduce the product in the United States." Porridges are somewhat more popular in Canada (any big surprise?), so this is a good test market for them. I would love to hear what General Mills learns from this venture, but I hope they decide to expand their offerings to more brands and to the U.S. as well. At minimum it could get children hyped over oatmeal!

I have long contended that with the breakfast cereal market in decline, innovation is critical. This could be an opportunity for the big players to extend their already well-known brands to hot cereal. Kellogg has already done this with Special K, but they all could benefit from following General Mills' lead with Lucky Charms and Cinnamon Toast Crunch and try other pairings. Some naturals that come to mind for me would be Apple Jacks, Cap'n Crunch, Cocoa Puffs, and Froot Loops. What about Boo Berry, Count Chocula and Franken Berry in the fall?

What fun, new hot cereals would you like to see?





Saturday, July 16, 2016

Annie's cereals now available nationally

If you look around the "natural" section of the cereal aisle of many U.S. grocery stories you will probably see the new Annie's organic cereals. They are widely available nationwide now, and come in three varieties: Berry Bunnies, Cocoa Bunnies, and Frosted Oat Flakes.

On the surface this might seem like a relatively insignificant development, especially since "health food" branded cereals are a small and niche, albeit growing, market. Upon closer examination, however, this is a significant story because it involves one of the major players: General Mills.

The story started back in September 2014 when General Mills announced that they would be acquiring Annie's, which had become a well-known player in natural and organic foods targeted to families. Recognizing the growing interest in more nutritious foods among consumers, General Mills saw an opportunity to expand its offerings by adding a recognized and respected brand to its portfolio. Annie's is, however, far more than cereal - they make a wide range of food products. In fact, cereal is not one of their traditional strengths. They first tried back in 2007, but quickly discontinued the line. General Mills, a leader in cereal, wanted them to try again, hence the current three new ones first announced back in February, but only now widely available.

Of course, Annie's is not General Mills' only line of more natural cereals, as they already have the Cascadian Farms brand. But, in this time of frustrating cereal sales, companies are attempting whatever they can to change their fortunes. General Mills is hoping that the Annie's brand will be part of the solution.

Sunday, June 12, 2016

Toast goes Tiny

Last week General Mills proudly announced what they call, "our first new cereal brand in 15 years." Tiny Toast cereal is "shaped like small pieces of toast sprinkled with blueberries and strawberries," and is the result of extensive research and development.

On the positive side, it is good to see some new cereals, with bold, fun packaging that should grab consumer attention in the grocer's aisle. The whole miniature toast experience will liven up the breakfast table, at least on the short-term.

I take exception, however, to General Mills calling this a NEW cereal brand. Perhaps it is a distinctly named brand, but the small toast concept is hardly new for GM. What about Cinnamon Toast Crunch, French Toast Crunch, Chocolate Toast Crunch, and others? Obviously, the earlier "toast" varieties have been very successful, so why not expand on it? But, in light of that, to call this a new brand is a stretch.

Nevertheless, we'll watch (and taste) to see if Tiny Toast is a way for people to keep cereal at the forefront of their breakfast menu.

Thursday, December 31, 2015

New Year - New Health Emphasis

It's that time of year. Holiday excess has us feeling extra full and guilty, and we're resolved to begin the New Year with an emphasis on health and fitness. Marketers of food, exercise equipment, gyms, etc. are quick to take advantage of this momentary blip of sanity that invades our life before we return to the lifestyle patterns that contribute to our demise.

With 2016 now almost here, the cereal companies are poised to take advantage of the New Year's health craze. It can be argued that healthier cereals are already becoming more and more the trend, but to launch these in late December / early January is perfect timing. This year there are at least two notable examples appearing on grocery store shelves.

General Mills is putting its bets on a massive launch of an expanded Nature Valley line of oat cereals. Nature Valley is already a strong brand, but up to this point has been mainly about cereal bars, granola and muesli. Now, they have three new more conventional breakfast cereals: Honey Oat Clusters, Chocolate Oat Clusters, and Baked Oat Bites. The latter looks particularly interesting, and I will review it in the near future.

Kellogg, already having introduced its Origins line earlier this year, is of course placing its emphasis on its Special K brand of cereals and other food products. Previously the company tried to position Special K as a diet food, but came to its senses over a year ago recognizing that a broader health focus is the way to go. For 2016 they have introduced two new cereals under the "Nourish" sub-brand, both of which are multi-grain flakes with trendy quinoa. Flavors are: Apple Raspberry Almond, and Coconut Cranberry Almond.

These new offerings will have to compete with all the other health oriented cereals that are taking over the grocery aisle, but for health conscious consumers they may provide something new and novel to try before going back to their Lucky Charms and Froot Loops in a few weeks.

Sunday, December 20, 2015

Misleading the way to sales

As first pointed out on this blog 18 months ago, General Mills is playing some games with consumers when it comes to its relatively new Cheerios Protein cereal. While not really lying, they nonetheless manipulated the serving sizes on the cereal compared to regular Cheerios to make it look like the Protein variety has substantially more protein, when in fact the difference is minor.

Others have noticed as well, including the Center for Science in the Public Interest (CSPI), who recently launched a class action lawsuit against General Mills alleging false marketing. They point out the protein discrepancy, and reveal that Cheerios Protein also has more sugar.

The sad part in all of this is that in an effort to gain market share companies can sometimes resort to trickery to fool consumers (the recent Volkswagen debacle is another great example). General Mills and other cereal companies need to focus on true innovation if they want to increase (or at least hold on to) sales. They can do it, but these kind of shenanigans are not the way to go.

Tuesday, November 24, 2015

Startups and Innovation

A few weeks ago General Mills announced the formation of a new business development and venturing unit called 301 INC, designed to help entrepreneurs obtain the capital and resources they need to expand their businesses. 

This is a significant move, as it is a recognition from a large food corporation like General Mills that some of the best innovation comes from creative startups. As I've said here many times before, innovation is absolutely essential for the future of the cereal industry, and with this initiative we are seeing lessons being learned from other industries like high-tech where venture capital investing is all the rage.

Over the years we have watched a number of exciting cereal concepts emerge, but few have survived. Sure some reached a point of success that enabled them to be bought out by bigger companies, but many have perished due to lacking the finances needed to get their ideas off the ground.

Hopefully this will foster some exciting new cereal ideas for the breakfast table.

Tuesday, September 22, 2015

The Selfie Spoon

Creative, viral marketing could provide a great boost for cereal companies, and it appears that General Mills might be on to something.

Building on the success of their wildly popular Cinnamon Toast Crunch they have come up with a Selfie Stick that will make it easier for you to take a photo of yourself eating your favorite cereal (i.e. CTC). What makes this selfie stick stand out is that it has a spoon on one end, providing the perfect combination that will allow you to engage in your social media promotion while having breakfast. I'm sure we've all wondered how we could make this happen. Right?

The best part of this new marketing novelty is that it is free, except for shipping and handling. The only problem is that it is sold out (no surprise) on their website, but the promise is that more are coming. Just keep checking.  

Fun!

Monday, June 22, 2015

General Mills is getting "real"

For regular followers of this blog I apologize for the recent hiatus in postings. Life has been very full! But, here's a story to get back into the bowl:

Breakfast cereals really began to stand out for their culinary creativeness, not only because of marketing, but due to chemistry. Back in the 1950's and 60's as a society we were introduced to a myriad of innovations from laboratories that concocted a wide range of new experiences and solutions for a everything from cleaning products to food. Food chemistry enabled manufacturers to try things in their recipes that were never before possible. Preservatives enabled food to last longer on the shelves. New colors and flavors gave rise to food with powerful taste and appearance. We believed that life was not only better with chemicals, but that perhaps someday chemistry would solve all of our problems, possibly even world hunger.

A lot has changed since then. As consumers became more health conscious and suspicious of these Franken-foods there was a growing move back to more natural, whole foods and away from things artificial. We see this with breakfast cereal. Whereas a few decades ago we were enamored with out of this world cereals, today, as evidenced by work of startups, the trend is definitely toward health. Chemicals are out. Low-processed, high fiber, natural (and even exotic) grains are in.

It's no secret that the cereal industry is struggling, and the big companies are especially trying to figure out to reverse the overall trend and their own sales. Innovation, a frequent theme in this blog, is the key.

Today we learn that General Mills is taking a bold step (at least for one of the big three cereal manufacturers), and has announced that they will be eliminating artificial flavors and colors (or more accurately "colors from artificial sources") "over the next two or three years". They clearly see the handwriting on the wall and know that most consumers want this. Even if 60% of their cereals already meet this standard, having others that still contain these artificial ingredients tarnishes the brand. This is not, however, the first time the company has made this type of across the board recipe change. Several years they committed to including "Whole Grains" in all their cereals.

In many ways this is a significant move that cannot but help their brand, and General Mills seem to be doing all they can to send these kinds of messages (even if polarizing), such as when they appealed to the LGBT community.

Despite all of this it is important to remember that removing artificial colors and flavors does not mean that General Mills has suddenly become an uber-health food brand. It's a welcome tweak, but does not commit to removing any other artificial ingredients, nor does it make some of the suspect highly-sugared cereals any more nutritious.

But, it is a sign that cereal companies are getting more real. And, that's a good thing.

Wednesday, December 10, 2014

What Consumers Want: Favorites from the Past

Just a couple of weeks ago I wrote on how General Mills may have misread consumers in their recent push to use non-GMO ingredients. It seems like the company is starting to get it, now going after what consumers really want. Evidence of this comes just a few days ago when they announced the return of a cereal they discontinued eight years ago, French Toast Crunch.

Obviously, in 2006 the executives at General Mills figured that sales were not sufficient for this variant of the Cinnamon Toast Crunch series (which incidentally just celebrated its 30th birthday) so they dumped it. What they did not realize is how passionate some people were for this cereal. The loyal following made their disappointment known, and some even went to great lengths to get some from Canada where it has remained available. With the recent growth of social media the pressure on the company seemed to increase, with even one fan (@FTCtoUSA) creating a special Twitter account to rally fans around the purpose of getting General Mills to bring their favorite cereal back.

It has worked, and in the New Year grocery shelves will be brimming with the red boxes. Fans are ecstatic, a point that General Mills is quick to highlight. Who knows if French Toast Crunch will really make a difference in overall sales for the company, but at this point it is better for them to listen to what consumers really want and to tap into their passions. At minimum they have earned tremendous goodwill and have a powerful story to tell.

I personally do not have any special memories of French Toast Crunch, but I will be trying it out again (and featuring a review here). I do hope, however, that it becomes a trend that other cereal manufacturers will follow. As I've discussed on several occasions before, bringing back nostalgic cereals (not just retro boxes, but actual cereals) would be a great way to re-energize consumers who are tired of many of the current offerings on the market. General Mills has done this previously with their Halloween monster cereals, and I believe that there are many other opportunities out there. For example, Adweek just highlighted five other cereals from the past that appear to generate significant Twitter chatter: Oreo-O's, Waffle Crisp, Nesquik cereal, Pop Tarts Crunch, and the monster cereals.

What cereals would you like to see return, even if for a limited time? (My short list: Freakies, OKs, and Pink Panther Flakes).

Saturday, November 22, 2014

What do consumers want?


As cereal companies struggle to find the product and marketing strategy that will bring success, it often feels like they are throwing Jell-O at the wall to see what sticks: New products, new flavors and varieties, re-designed packaging, niche targeting, etc. Unfortunately, these seldom bring breakthroughs.

At the beginning of this year General Mills thought that non-GMO (genetically modified organisms) ingredients in Cheerios and Grape Nuts would attract consumers who had to choose between many different brands (including generic knock-offs) in the grocery store aisle. Naturally they would pick the non-GMO cereals and see General Mills as a trusted, safe brand. Right? Not so quick.

According to an AP report not long after the change, there is no evidence that sales of General Mills' GMO-free cereals have increased. While it could be argued that it is the right thing to do, and certainly many consumer advocates have praised the decision, the bottom line is that most people simply do not care. A couple of months ago, General Mills' shareholders reinforced this view by casting a vote 98% against a proposal to remove all GMO's from the company's products.

The point is that making a move like this is not the answer to the downturn in cereal sales. Consumers are not easily impressed with all these marketing maneuvers. For the small minority that are committed to eating non-GMO foods Cheerios might now be an option, but the reality is these individuals are likely buying other cereals from a brand with a stronger, more consistent health focus. Perhaps General Mills is already understanding this, as is reflected in their recent purchase of Annie's.

Again, it's innovation that is going to turn around the cereal industry. Hopefully this recent experiment at General Mills will reinforce the fact that grasping at straws rarely works.

Tuesday, September 16, 2014

Monster evolution

This is not new news (I highlighted it on the Facebook page last month) and in many ways I wonder whether it deserves yet another complete blog post, but the annual release of General Mills' Monster Cereals has become such a highly successful and expected campaign that it probably does require special attention. At least this year again.

Just in time for Halloween every year General Mills provides a limited release of these popular cereals that have their origins back in the 60's. These are nothing less than fun cereals that fit the season and elicit all kinds of nostalgia for those of us who grew up on these sugar-laden breakfast treats.

Last year General Mills went big time with the Monster Cereals, even re-releasing two of the franchise that had been hidden in the vaults for many years, Frute Brute and Yummy Mummy. In addition to the bold, modern artwork they also released vintage boxes of all five varieties at Target.

So, how does a company keep up their past successes? Try a new twist. This year, they have acquired the talents of artists from DC Comics to give a fresh look to the three mainstay monsters, Count Chocula, Franken Berry, and Boo Berry. Unfortunately Frute Brute and Yummy Mummy have returned to retirement, but for cereal enthusiasts and box collectors the three redesigned monsters are must buys. And, those looking for retro boxes can return to Target for a new, old version of those (complete with cut-out masks)!

General Mills has a real winner here, and it's good to see them mix it up every year with something different.

Thursday, August 07, 2014

General Mills sharpens focus on cereal

The cereal industry has been struggling as of late, despite some positive signs here and there. The big companies, in particular, have been trying to figure out how to stem the tide among many shifts in consumer habits and preferences.

I typically avoid commenting on all the quarterly financial reporting, etc. coming out of the cereal industry, but last month General Mills announced some plans they have for the future. While most of this is the expected PR stuff, it was interesting to see them doubling down on cereal, despite the diversity of their brand portfolio. They still see cereal as a tremendous opportunity and want to insure that they remain a leader in this industry.

How will they do it? A few key strategies were described:

1. Focus on nutrition qualities such as protein, gluten-free and fiber. They recognize that consumers want healthful cereals and they want to capitalize on that.

2. More flavor. Cereals must taste great, and they will be tweaking their recipes to meet that challenge. For example, more cinnamon taste in Cinnamon Toast Crunch and fruitier Trix.

3. Play off of adult nostalgia. Cereal has an emotional attachment to many people, and to help adults return to their childhood every morning could be a winner.

4. More advertising, especially online.

It is good to see a company like General Mills hone in on their core business. Their strategies seem sound, but the key will be execution. Can a large corporation respond quickly and creatively enough to the trends, and will consumers trust these moves when they are sometimes less than authentic?

We'll be watching.

(Source: Business Week)

Wednesday, June 18, 2014

General Mills and numbers

Cereal companies continue to look for an edge in today's competitive market. This means finding a way to stand out among the countless varieties of cereals on the grocers shelf. Recently, we've seen some creative innovation among some upstarts, but the big companies sometime appear a little more desperate.

A good example of some puzzling attempts comes from General Mills. Like all the big companies they've been trying to figure out how to have consistent revenue growth from cereal. It hasn't helped that they've recently had some public relations disasters which have not helped their cause. Their latest tactic is go for the nutrition conscious consumers, knowing that many are looking for cereals with more protein and less carbs. So, they recently introduced some protein-rich varieties of certain cereals, most notably Cheerios Protein, in two flavors, Oats & Honey and Cinnamon Almond. There are others as well, including a Fiber One Protein cereal.

It sounds good, except for one thing. In order to achieve this perception of high protein they've been less than forthcoming. They tout the fact that Cheerios Protein contains 11g of protein per serving with milk. That's all fine and dandy, but when you look a little closer at the numbers it's not as impressive as it might appear. First, that number does include milk. Factor that out (because you will probably use milk regardless whatever cereal you eat) and you are left with 7g of protein per serving. Still not shabby, but again somewhat misleading. A careful look at the Nutrition Facts reveals that these calculations are based on a 55g serving. What is interesting to note is that original, regular Cheerios have 3g of protein per serving. Obviously the new Protein variety has much more. Right? Not so quick. Regular Cheerios is based on a 28g serving, half the size. So, if you compare by equal weight measurements the actual difference is far less impressive, probably closer to a 1g margin. Looking at the Fiber One Protein cereal comparison with its original counterpart, the same game is being played.

To be fair, General Mills is truthful, both implicitly and explicitly. Cheerios Protein does have more protein, but the problem is that it's really not that significant. Oat-based cereals are already higher in protein than most cereals, so considering the real advantage of this new product this whole thing appears to be nothing more than a marketing gimmick. Consumers who don't take the time to read the labels or who are not well-versed in nutrition might be left with an impression that is well overstated.

It is shenanigans like this that is turning off many consumers to the mainline cereal brands. If General Mills wants to strengthen their market share a good place to start might be with less hype and a higher degree of honesty and transparency.


Thursday, March 27, 2014

Strategies

Cereal sales are in decline. We know that, and so do the cereal companies.

In going over some of last month's chatter from big cereal CEO's it is interesting to read what they think the solution is. They all recognize that cereal is core to their business, and that some fine-tuned strategies are required to get back to the prominence they once had.

I encourage you to read some of the reports on the CEO's comments (see links below), but here are the major highlights:

Kellogg recognizes the need to reinforce the benefits and value of cereal at breakfast.

General Mills is planning on more product innovation and targeting marketing to four growth sectors: older consumers, millenials, middle-class consumers in emerging markets, and multicultural families (particularly Hispanics).

Easy to say. Hard to do. But are these strategies that will really turn things around? Only time will tell, but while these general statements are on the right track implementation will be critical, and I wonder whether the big companies have what it takes to really respond to what consumers are looking for.

Sources: brandchannel, and BakeryandSnacks.com