Tuesday, July 31, 2007

More shrinking boxes

Last fall I reported the trend toward cereal companies decreasing the size of their boxes in order to cut costs and maintain profits. Kellogg was the first one out of the gate. Now, there are reports that General Mills is using the same trick to camouflage price increases.

Sneaky? Yes.

Harmful? Maybe not this one time. But, big cereal companies cannot believe that they continue to play these games without some affect on consumers. Many are already turning to generic brands and specialty cereals. If Kellogg, Generals Mills are not careful they will be minor players in a marketplace that could easily continue to dominate if they focused more on innovation.

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Sunday, July 29, 2007

Cereal poll update

The results from my last Breakfast Bowl poll are in. The last question was: "How do you prefer your cereal?"

Here are the results:

Crunchy - 76%
Soggy - 24%

Now it's time for our next question: In light of their latest innovation, "What do you think of Kellogg's Cereal Straws?"

LINK TO POLL

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Thursday, July 26, 2007

Caffeinated Cereal?

It seems the fad this year is chocolate versions of existing cereals.

Could caffeine be next?

A Colorado inventor, Dr. Robert Bohannon, has come up with a caffeine additive that can be easily added to virtually any food. It will be marketed under the brand name, Encaff. Obviously adding caffeine to cereal would be natural fit since many people depend on the stimulant to get going in the morning.

Caffeinated Corn Flakes anyone?

PRESS RELEASE

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Wednesday, July 25, 2007

The Cereal Bowl announces expansion

I have long been intrigued with the development of cereal restaurants over the past few years. Cereality was the emergent leader but had some early struggles, and may have some new life having been bought out by the parent company of Cold Stone Creamery.

But now, the other big contender, The Cereal Bowl, has announced expansion. They claim several thousand franchise inquiries, and say that they will be going nationwide with 16 store now under development.

I sure hope one of these companies gets wise and builds one close to me somewhere!

LINK to press release

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Tuesday, July 24, 2007

Cereal Straws

I've been a little reluctant to post on Kellogg's new Cereal Straws. It's hard to take them seriously.

Cereal Straws were recently introduced as a fun way for children (I presume) to get their cereal and milk. The straws are actually flavored, crunchy tubes, and come in two varieties: Froot Loops and Cocoa Krispies. As I see it, their nutritional value is low and they are relatively more costly.

I doubt Cereal Straws will catch on, especially considering Kellogg's recent conversion to healthy cereals and related marketing. Nevertheless, I give Kellogg credit because they are doing what I have long suggested: focus on innovation. In a highly competitive market this is the only way they can stay competitive.

Who knows? Maybe I'll be wrong and Cereal Straws will catch on like another ridiculous Kellogg product: Pop Tarts.

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Thursday, July 12, 2007

New beginning for Cereality?

News today that the parent company of Cold Stone Creamery has acquired Cereality. This is significant, not only because of Cereality's recent woes, but because Cold Stone is a perfect fit that could give the cereal bar some much needed expertise and direction.

Story in the Phoenix Business Journal.

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Cereal goes Simpsons

Summer has kept me busy and away from the computer, but the recent move by 7-Eleven has brought me back.

In anticipation of the upcoming Simpson's Movie, convenience story chain 7-Eleven has come up with some very creative marketing tie-ins, including the decorating of a few select locations to be the Simpson's inspired Kwik-E-Mart. But, the gimmick that has caught my attention, of course, is KrustyO's Cereal. The unashamedly low nutritious cereal adds to the movie's buzz and is a great collector's item for Simpson's fanatics and cereal box collectors.

KrustyO's (apparently made by Malt-O-Meal) is only available at 7-Eleven, and for a limited time.


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Wednesday, June 27, 2007

Cheerios in shape

General Mills Canada has introduced an innovative, curved box for Multi-Grain Cheerios. This creative design sends a strong marketing message about managing weight using the cereal. In a cereal marketplace crowded with this message General Mills has found a unique way to stand out.

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Thursday, June 21, 2007

Reaction to Kellogg

Kellogg's recent announcement that it will change it's advertising and packaging policies has generated more reaction than any other cereal story that I can recall. Apart from the extensive news coverage, many bloggers have chimed in, as have a large number of news commentators. Almost all of the reaction has been negative, or at least skeptical.



While I won't (and can't) reference every online reaction, here are some of the more significant ones that I have come across in the last week:

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Friday, June 15, 2007

Major nutrition and advertising changes at Kellogg

This week Kellogg bowed to ongoing pressure from advocacy groups who believe that cereal companies are wrongly targeting children with unhealthy cereals. The company announced:

1. It will cease advertising to children under 12 unless the cereal meets certain nutritional guidelines for calories, sugar, fat and sodium, and

2. It will cease using licensed characters or branded toys to promote unhealthy cereals.

In addition, Kellogg will introduce new front-of-package labeling to clearly state the cereal's nutritional values.

These are profound changes that could dramatically alter both Kellogg's cereals and marketing. It is a shift that could also change the place of cereal within our larger culture.

Under these new voluntary guidelines, some cereals often targeted to children meet the nutritional standards, while others don't. For example, Frost Flakes (and the Tony the Tiger) are safe. But, an old standard like Rice Krispies is not (too much sodium). This could mean the end of the Snap, Crackle and Pop characters, let alone Toucan Sam, and Dig 'Em.

I understand the rationale for the changes and the pressure put on companies like Kellogg. I hope that with all these changes we do not lose the "fun" aspect of cereal, since breakfast cereal is much more than just another food in our society.

NEWS RELEASE



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