Disney changes food strategy

Disney is known for marketing itself in countless ways, including licensing of food products. In recent years Disney has had a close relationship with Kellogg, resulting in the introduction of a number of innovative cereals ranging from Princess cereal to The Incredibles cereal.

But, it appears that this relationship has not worked out. According to AdAge.com Walt Disney Co. has struck up an agreement with General Mills for future licensed cereal (and other food) products . But, one of the major differences is that its new food products will not positioned with premium prices, as with Kellogg. Prices will be significantly lower.

But will Disney's new strategy cheapen their image?


Technorati Tags: cereal, Disney, Kellogg, General+Mills, marketing, breakfastbowl

Weekly Poll Update

The results from our latest Breakfast Bowl poll are in. Last week's question was: "What is my primary consideration when buying a breakfast cereal?"

Here are the results:

Taste - 52%
My Favorite Cereal - 24%
Nutrition - 19%
Packaging - 5%
Price - 0%
Influence of my children -0%
Desire for variety - 0%
Special offers or premiums - 0%

My take on the above results: Not really unexpected.

Here's the question for this week:

There are several major cereal manufacturers, so apart from individual cereals, "Which cereal company/brand do I prefer?"

LINK TO POLL

Technorati Tags: cereal, polls, breakfastbowl

The good and the bad of cereal bars

I don't usually focus too much attention here on cereal bars, as I'm not convinced they are really "cereal" (at least not to a purist). Nevertheless they are gaining in popularity as cereal companies look for ways to increase market share and profitability in light of increasing competition and lifestyle changes.

Two recent articles, both from Europe, are worth reading on the topic:

Food Europe.com discusses the need for cereal manufacturers to respond to lifestyle changes, with cereal bars an excellent example of this trend.

which? from the U.K. reports an investigation of the best selling cereal bars, finding that they were all high in sugar, and most were also high in saturated fat.


Technorati Tags: cereal, bars, breakfastbowl

Fortune article on Kellogg

In recent weeks I have made several references to the possible trend in decreased cereal consumption, especially as it relates to Kellogg. Fortune magazine has picked up on this with a brief article, highlighting how Kellogg and other cereal manufacturers are finding it necessary to expand into other foods to see growth in sales and profits. The article quotes an analyst who estimates that only 47% of Kellogg's revenues now come from cereal.

The trend watch continues.

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Technorati Tags: cereal, Kellogg, breakfastbowl

Beware the shrinking box

A Consumer Reports article reveals that cereal manufacturers will be shrinking boxes on some cereals as a tactic to deal with increasing costs. Kellogg is leading the way with Frosted Flakes, Rice Krispies and Frosted Mini-Wheats, and it is expected that other brands and manufacturers may follow suit.

Sneaky? Yes. Necessary? Probably, if they want to maintain profits, etc. Good for business? Over the long term, probably not. I know the cereal industry is facing many challenges, including increased competition and possible lower consumption trends, but they must find more ways to bring value to consumers. Only in this way will they survive over the long haul.

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Technorati Tags: cereal, Kellogg, marketing, breakfastbowl

Kellogg's Number One Brand

Kellogg has a number of powerful brands. But, which is number one? Corn Flakes? Rice Krispies? Frosted Flakes?

It's Special K. What was once a timid cereal has now emerged as Kellogg's strongest brand, primarily because of its emphasis on dieting (as I've previously posted). Health conscious consumers have latched on to this concept, and Kellogg has taken advantage of it by introducing a number of new cereal varieties, such as Special K Red Berries. But, now they are going to extend the brand even further by launching protein bars and even "protein waters" and Special K Personal Trainer watches. (See article in Advertising Age).

Special K has been a runaway success because Kellogg has been very clear as to its brand identity. Other cereals could benefit from similar marketing strategies (and the recent success with All-Bran may be another good example). One only has to wonder, however, if extending the brand beyond cereal will dilute its strength and make it a meaningless commodity.

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Technorati Tags: cereal, Kellogg, Special+K, marketing, BreakfastBowl

Weekly Poll Update

I've been away and I'm behind on cereal news and our weekly poll. Things should get back to normal now. Thanks for your patience...

The results from our latest weekly Breakfast Bowl poll are in. Last week's question was: "Compared to the past I eat breakfast cereal more often, less often, about the same?"

Here are the results:

More Often - 35%
Less Often - 35%
About the Same - 29%

What does this suggest? Not much change overall. Cereal is still a staple food.

Here's the question for this week:

There are many factors that influence buying. So ... "What is my primary consideration when buying a breakfast cereal?"

LINK TO POLL

Technorati Tags: cereal, polls, breakfastbowl

Weekly Poll Update

The results from our first weekly Breakfast Bowl poll are in (Thank you to all who participating in this inaugural survey!)

Last week's question was:

"With all the flavors of Cheerios now available, which one is your favorite?"

Here are the results:

Original Cheerios - 38%
Honey Nut - 19%
Berry Burst Strawberry - 13%
Frosted - 13%
Fruity - 13%
(No responses for the other varieties)

Here's the question for this week:

There is some evidence that people may be eating less cereal. So ...

"Compared to the past I eat breakfast cereal more often, less often, about the same?"

LINK TO POLL

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Technorati Tags: cereal, polls, breakfastbowl, BreakfastBowl

Kellogg financial results

I don't normally focus too much here on the financial ups and downs of the major cereal corporations, but Kellogg's latest financial results are worth noting.

Kellogg announced better-than-expected results, maintaining its number one position among cereal makers. Both sales and profits are up.

That's good news for a company and industry that is highly competitive, and there are signs beginning to appear (see my post last week) that we are beginning to turn away from traditional cereal consumption.

Even Kellogg's latest results are telling. While company sales overall rose 8%, U.S. cereal sales increased only 2%. That's still growth, mainly because Kellogg has worked hard at innovation, but the company is seeing its most significant success in other sectors of its business.

We'll keep an eye on these trends.

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Technorati Tags: cereal, Kellogg, finance, breakfastbowl, BreakfastBowl, The Breakfast Bowl

Is Froot Loops the same everywhere?

A study published at Just-Food.com reveals that Kellogg's breakfast cereals vary from region to region as to the amount of salt they contain. For example, some cereals sold in the United Kingdom and Ireland contain more than three times more than the same brand of cereal in the U.S.

Obviously, Kellogg is tailoring their products to the tastes and cultures of the markets they serve. Sometimes it's the name, other times the marketing, and now we find out the recipes as well. There are many examples of regionalization. For instance, Corn Pops in Canada is a completely different looking and tasting cereal than what is sold in the U.S.

A little troubling, perhaps, for cereal purists.

LINK

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Technorati Tags: cereal, Kellogg, marketing, breakfastbowl, BreakfastBowl