More Wheaties questioning

Last week General Mills released their latest financial data, and the news doesn't look good for Wheaties. There is growing evidence that their market share and sales are declining. A recent story at CNBC captures the situation well (and includes quotes from yours truly).

I've talked about the brand struggle at Wheaties for several years now, and even as recently as last month. Wheaties is a familiar brand that has captured many significant connections with sports in America over the past few decades. But, despite our nostaglia with the cereal, it just doesn't have much appeal any longer. Is it time for Wheaties to bow out of the race? Or, is there still potential with a renewed vision?

New life for custom cereals

One of the trends that I have been watching for several years is the rise of companies that create custom cereals according to customer demands. This innovative manner of making cereal had its beginnings in Germany and is led by mymuesli. Two U.S. companies, [me]&goji and MixMyGranola, tried to copy this model here. At first this looked very promising.

Last summer, however, it appeared that this approach might not being having the intended success. [me]&Goji announced that they would be shutting down. In the fall, MixMyGranola entered into a partnership with Element Bars, a food bar company, although it does not appear that relationship is still intact. Just this week, however, Element Bars announced that they were acquiring [me]&goji which had already ceased operations. Jonathan Miller of Element Bars says that they "share the same vision of custom, whole foods and hope this acquisition will continue our growth in the custom food space." It is not yet clear how the cereals will be branded.

One of the difficulties that these upstart companies faced was breaking into the large cereal market. Perhaps their future will be brighter if they are part of a company with more resources. We will continue to watch.

Review: The Great American Cereal Book

Over the years there have been several books published about cereal, but none is quite like the latest one to hit the shelves: The Great American Cereal Book: How Breakfast Got Its Crunch. If you are a cereal lover, then this is one book you will want to have around your home. This is not another historical narrative of the cereal industry, but a compendium of virtually every major American cereal ever made, complete with key historical points and many wonderful cereal box pictures. You will be fascinated with all the cereals, both familiar and obscure. It is so easy to open the book at almost any page and get lost in browsing. Interspersed among the cereal listings are several brief articles featuring highlights from cereal's amazing history. If you are looking for a book to feed your cereal passion, this is the one to get. It's fun, informative, and full of flavor!

Wheaties releases retro boxes

The last few years has seen several companies, including Quaker, Post, and Kellogg, sell limited edition vintage boxes to tap into cereal nostalgia. But, no company has done this more consistently than General Mills, which currently has another annual set available at Target. This week the company announced another effort, with the release of three retro boxes of Wheaties featuring three prominent athletes of the past: Muhammad Ali, Bruce Jenner and Mary Lou Retton. These boxes are largely reproductions of past ones.

I've talked a lot here about the Wheaties brand in the recent years, and it certainly has lost much of its prominence, even despite their mediocre attempt with Wheaties FUEL. This latest marketing campaign could be a significant boost, and if followed up with a steady stream of new hero boxes could re-establish the brand in minds of consumers.

(Source: Business Wire)

The digital cereal box

Interesting video from USA Today that features Mark Addicks, Chief Marketing Officer for General Mills. In the interview he talks about ways that they hope to engage consumers through digital content (via devices such as smartphones) on cereal boxes and other food products. The packaging becomes a "platform for content", and prize will be virtual. Done right, this could change the way we eat our cereal every morning, and certainly gives an advantage to the companies that can create digital media experiences.

Color-changing cereal

Innovation is critical for the cereal industry, but when is it just plain gimmicky? Researchers have developed a way to make breakfast cereal change colors once it comes in contact with milk. Quaker Oats owns the patents for the technology.

Sounds like fun, and would certainly catch people's attention. But would it be enough to lead a sustainable cereal brand?

(Source: The Guardian)

Cheerios tries weight loss

Is it just that it's January, or does this represent a new focus for Cheerios? General Mills announced a partnership with Fitness Magazine for a cross-promotion with Multi-Grain Cheerios. But, instead of the previous heart-health benefit claims, now the cereal is part of an online weight-loss program. This puts MG Cheerios in more direct competition with Kellogg's Special K, which has a far more comprehensive branding for weight loss.

This all raises several questions. Does this represent a potential shift for Cheerios marketing (even though this is initially just a six-month promotion)? Why is only the Multi-Grain variety touted for weight loss? Will this cause confusion for the other Cheerios' messages, such as lowering cholesterol for the regular variety? And, will people really take this campaign seriously?

Source: MarketingDaily)

What's up with Quaker?

Yesterday I reported on some packaging updates from Quaker, plus one new cereal. That was pretty significant, but now I discover that there is more!

Four other new varieties have been spotted in the wild, including three new Life offerings, two of which are somewhat unusual for the brand.

The new varieties are: Maple & Brown Sugar Life, Apple Cinnamon Crunchtime Life, Strawberry Crunchtime Life, and Honey Nut Oatmeal Squares. Watch for them!

So, what's up with Quaker? That's a lot of change all at once. Maybe this thrust is a sign of their intent to ramp up their position within the cereal market. Whatever it is, it is rather impressive.

New looks at Quaker

Recently I highlighted some new developments from Kellogg and General Mills plus ownership changes coming at Post. Now, Quaker is making the news to begin 2012. Although I haven't seen any news releases or any changes showing up on their website yet, evidence is starting to appear in grocery stores. It appears that most of Quaker's leading cereal brands are going through some significant packaging design changes. Life is getting a fresh new look that is simple but stands out among the competition with its contemporary design. Also, notice that Quaker logo itself on the package is highly refined, giving a look that reinforces the company's heritage. I've also seen some images of some other re-designs, includes Quaker Oatmeal Squares. Packaging is one way for companies to carve out their identity and market position, and this is one of the most impressive design updates I've seen in the cereal industry.

Also, I spotted a new cereal, Whole Hearts. Essentially this is Quaker's version of Cheerios (although it claims to be "lightly sweetened"), but instead of just copying it like all the generic brands have, it comes in heart-shaped pieces with a much clearer message of the heart benefits of oats. Good move from an oats-driven company.

Post goes independent (again)

Post, one of the original breakfast cereal brands, is once again facing new ownership, the fourth time in 26 years. But, instead of being taken over by another food conglomerate (as it was in the past by General Foods, Kraft, and most recently Ralcorp), Post will become an independent, public company. Ralcorp didn't have success with the brand and has decided to move on.

Post certainly is a well-known company, with some strong brands, but really nothing that has captivated the marketplace. As I've suggested previously, the middle of the cereal market is getting squeezed, and Post is a prime example of such a company struggling to enjoy success. The new company will embark on a new strategy, but organizational and functional changes may not be enough for Post to be the cereal powerhouse it once was.

(Source: stltoday.com)