In some ways this is hardly a story with reporting, but on the other hand it is significant. In recent years Kellogg has given new life to one of its core cereal brands, Special K. By focusing on weight loss, they have created a whole range of cereals, bars, and drinks under the Special K label. The effort has paid off, making Special K Kellogg's number one brand. But, there was always one thing that puzzled me. For such a health conscious cereal, Special K was significantly lacking in fiber...
It's been a busy summer personally, but quiet on the cereal front. But, with September almost here some cereal developments are beginning to emerge. For example, there isn't much fanfare that I can see, but Kellogg has launched Pops MiXit cereals, five different flavored cereals designed specifically for mixing. According to their website these cereals are "for a limited time only", and there is indication that the primary retailer is Walmart. The varieties are: Chocolate, Double Fudge, Graha...
Not to dwell on the topic, but the recent Kellogg's recall has hit the company's bottom line. Second quarter financial results reveal a 15 percent drop in profits. Their stock price dropped over 4% as a result of the news. Kellogg is certainly to recover eventually from this costs associated with this recall. The bigger question is how long it will take to restore consumer confidence, especially since they were less than forthright in fully explaining the causes behind the recall. Source: AP ...
It's a slow summer in the cereal world, which allows opportunity to reflect far too long on relatively meaningless developments. For example, in Indonesia this past weekend a new record was broken where 2,274 people cereal together for the first time. Exciting, eh? What other cereal eating records should people be attempting? Maybe we need something like the annual hot dog eating championship every July 4th: Crazed contestants forcing down bowls of Froot Loops, or maybe All-Bran? I think the...
Kellogg's recent voluntary recall of certain cereals gained some media attention, but the biggest criticism leveled against them concerned the fact that they didn't immediately disclose the ingredient that was causing the unusual flavor and odor. Since then it has been revealed that the culprits are hydrocarbons, specifically hydrocarbon methylnaphthalene, whose safety is yet to be firmly established. As with all public relations matters the question is whether Kellogg handled this in the bes...
I missed this story from a few weeks ago, but it is one worth noting. Former wrestling star Hulk Hogan (real name: Terry Bollea) has launched a lawsuit against Post Foods because of a character the latter developed. "Hulk Boulder" has some likeness to Hogan and is used in a Stone Age-themed Cocoa Pebbles commercial with Fred Flintstone, Barney Rubble et al. (Source: New York Times) Technorati Tags: cereal, Hulk+Hogan, Post, lawsuits, breakfastbowl
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Consumer recalls are never a good thing for a company. Of course, how the recall is handled is critical for whether this turns into a public relations disaster. Nevertheless, it does leave a certain stain on their reputation. Kellogg recently issued a voluntary recall of select packages of Corn Pops, Honey Smacks, Froot Loops and Apple Jacks cereals, around 28 million boxes! The issue is an unusual smell and flavor that comes from the packages' liners. But, according to Kellogg, there is no rea...
In recent weeks I have had a series of posts looking inside three relative newer comers to the cereal industry - companies that are trying to break into the marketplace with their unique cereal concepts. I appreciate the willingness of Carolyn Creswell (Carman's), Adam Sirois ([me]&goji), and Maximillian Cascone (Pro Oats) to share the candid thoughts and dreams behind their respective ventures. As we've observed, these company leaders are passionate about their cereal and optimistic for t...
Add a fourth cereal company trying to tap into the nostalgic sentimentality of consumers. According to several reports on cerealbits.com vintage-looking boxes of Cap'n Crunch and Crunchberries are showing up in some stores. This is a great fit, because Cap'n Crunch is truly a classic from childhood! Technorati Tags: cereal, nostalgia, Capn+Crunch, breakfastbowl
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With life slowing down a little I'm finally getting back to my series on new companies breaking into the cereal market... From my previous posts we have observed that the three companies I am using in this case study are enthusiastic about their products and business But, there are challenges. Specifically, I was interested to find out the obstacles that newcomers into the cereal market face . Each of them had a unique answer: I was not really surprised by what Carolyn Creswell of Carman's s...
Life has been crazy the last couple of weeks. I will get back to my "Cereal upstarts" series ASAP, but in the meantime here are some recent developments: Kellogg is introducing a new variety of its cornerstone cereal, Corn Flakes. New Corn Flakes Simply Cinnamon is "oven-toasted Corn Flakes with a touch of delicious cinnamon flavor". New varieties are hardly new, and this is not the first Corn Flakes variant, but this is significant because Kellogg has yet to find a successful one for the C...
Continuing with my exploration of new companies breaking into the cereal market... As we discovered in my last post, the three sample companies are optimistic over their prospects. But, they face many challenges, especially as they compete against large, multi-national cereal companies in an already crowded cereal marketplace . While they recognize the challenges, they seem undaunted in their determination and belief in what they have to offer. Pro Oats' Maximillian Cascone has the following...
I am currently examining the attempt of newer companies to break into the crowded cereal marketplace, and have chosen three different ones to gain insights into their thinking and strategies: Carman's, [me]&goji, and Pro-Oats. The first question I posed to their company representatives is: "What do you see as the future of the cereal industry?" Not surprisingly they are quite optimistic about the future of the industry, and especially their respective company's place in it. While I onl...
One aspect of the cereal industry that has regularly captured my attention is the attempt by small, emerging companies to break into the cereal marketplace and take on the "big three". There are dozens of alternative brands out there focusing on a particular niche, some appear to be reasonably successful. A few, like Kashi, became so successful that they were actually taken over by one of the big cereal giants (i.e. Kellogg in this case). Over the next week I will be writing several posts tha...
Cereal has long been a convenient snack food, whether for toddlers or sitting in front of the TV in the evening. Now comes a candy, from Nassau Candy company, that combines cereal coated with chocolate in a convenient snack pack container. It's probably not suitable as a breakfast food (although I'm sure people will try!) but it potentially could cement a whole new dimension for cereal. Not Just Cereal comes in four flavors, and will be available at Walmart ... in the candy aisle. Technorat...
Making a cinnamon roll cereal is a great idea, but one that hasn't really taken off yet. Now Kellogg has introduced Cinnabon, capitalizing on a licensing agreeement with the well-known baker. This is not the first attempt by either Kellogg or Cinnabon. In fact, for Kellogg this is the third time. Previously they had produced Cinnamon Mini-Buns and Swirlz, but neither really took. Cinnabon tried to market its own cereals a couple of years ago, also with limited success. This is not a new relat...
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 ...
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 ...
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 agains...
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 recessi...
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Sep. 4, 2010 (5:02 AM EST) 