General Mill focuses in on three targets

This is not a new story, but actually one from two months ago that I noted but forgot to post...
Despite its recent growth, General Mills is still looking to bolster its position as a food company. At a recent conference they announced that looking ahead they are planning on targeting their food products (of which cereal is a major component) to Hispanics, Boomers and Millenials. Hispanics are projected to be the main source of population growth in the next five years, and special attention will be devoted to mothers and "savoring nature". Baby Boomers are a large, aging, demographic looking for health benefits. General Mills believes that the children of Boomers, the Millenials, are home and family oriented and as a result will tailor products to them, and connect with them through the latest innovations in technology.

It is always interesting to gain some insight into the marketing plans of a large corporation like General Mills. It is good to see them deliberately focus their marketing efforts, although one could argue that perhaps the chosen categories are much too broad. The key for a company of this size is make this more than just window-dressing; but to truly innovate in order to meet the demands and needs of increasingly fickle consumers.

Source: Advertising Age

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Limited outlook for Kellogg

Commenting on the financial performance of cereal companies is not always a useful endeavor, but in light of the current economy and the shifting cereal marketplace it seems to be more relevant right now. Recently I reported on successes at General Mills. But, the future may not be as bright for Kellogg. An analyst with BMO Capital Markets has downgraded Kellogg's stock, foreseeing limited growth from core brands, fewer new products, limited growth with Wal-Mart, and increased competition from Post. Of course, these are mere projections, but they are indicators of some of the challenges cereal companies are facing right now.

Source: BusinessWeek

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Crazy lawsuits

I've highlighted cereal-related lawsuits before, but usually these had more substance to them then this latest nominee for the Ridiculous Hall of Fame.

A California man launched lawsuits against Kellogg and Quaker for alleged deception in marketing Froot Loops and Crunchberries, respectively, as fruit-related cereals. Much to everyone's surprise, apparently neither of these cereals actually contain real fruit. We are all shocked!

The Froot Loops suit was dismissed, but the case against Crunchberries is moving forward. Maybe it will finally end stupidity across our country.

Not likely. We still have frivolous lawsuits.

Source: SFWeekly

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Cereal gains in a recession

General Mills announced today third quarter financial results which included increased sales and profits. Of particular interest is the growth of their cereal division:

"Net sales for Big G cereals grew 6 percent in the quarter, led by strong introductory sales of new Chocolate Cheerios and Wheaties Fuel, and gains by several established brands such as Multigrain Cheerios and Lucky Charms."

Obviously something is working for General Mills and confirms that cereal seems to do well in a recession, a point we noted several months back.

(Source: General Mills)

Technorati Tags: cereal, General+Mills, recession, breakfastbowl

Targeting Youth

The move is on to narrow the target of cereals. This is evident in Special K to women concerned about weight management, and new Wheaties FUEL for men. Of course, children have been targeted for decades. Kellogg UK is now taking a stab at the youth market, 16-25 with a new cereal called Krave (not to be confused with a Kellogg "Krave" product previously in the U.S.). Their strategy is not just with the chocolate hazelnut taste, but will be marketed with an extensive social media campaign.

That age group is a difficult one to tap into. It will be interesting to see how Kellogg fares in the U.K. and whether a similar niche is attempted elsewhere.

(Source: netimperative)

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National Cereal Day: March 7th

Today is National Cereal Day.

Celebrate. Enjoy a bowl!

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Wheaties goes for Gold

Coming off the Winter Olympics General Mills has secured three popular gold medal athletes for the covers of upcoming Wheaties boxes: Shaun White, Lindsey Vonn, and Seth Wescott. Apart from the obvious benefit of taking advantage of the recent Olympic fever this is significant in other ways as well. First, these are highly popular athletes, especially among the younger crowd. Could this mean a shift of focus to that demographic? And, this is on regular Wheaties boxes, not the new Wheaties FUEL. Obviously General Mills hasn't abandoned the core brand, and may be trying to breathe new life into it. In fact, notice the overall design changes to the box, representing a much bolder look. Will all these enhancements further revive Wheaties?

Technorati Tags: cereal, Wheaties, Shaun+White, Lindsay+Vonn, Seth+Wescott, breakfastbowl

Post builds on nostalgia

General Mills is not the only company taking advantage of cereal nostalgia right now. In a store I came across a new line of Post Toasties cereals that are actually being referred to as Post "Classics". (Will there be others?) Toasties was the name of Post's version of Corn Flakes, which was discontinued in 2006. The new Toasties, however, also come in Frosted Flakes, and wheat and barley O's varieties. This is not the first attempt for Post at tapping into nostalgia.

The new Toasties boxes are not truly vintage, but they do have the feel. Nevertheless, they are getting it right by going for the emotional attachment consumers have with cereal. Hopefully they will dig into their recipe archives even more.

By the way, on the topic of vintage cereals, be sure to visit the poll on our main page to indicate which cereals from the past you'd like to see.

Technorati Tags: cereal, Post, Toasties, breakfastbowl

Cereal - Milk Saturation

Not truly scientific, but check out this graph at Urban Cartography which depicts "Cereal - Milk Saturation Over Time". According to our past poll most people tend to prefer crunchy over soggy, but this fun graph is a good reminder of the quest we all have for the perfect timing. The chart says 3 minutes is ideal, but of course we all know it depends on the cereal!

Technorati Tags: cereal, milk, breakfastbowl

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