Progressive Grocer

FEB 2016

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Breakfast Cereal Grocery C ereal has long been a breakfast favorite, but the category has stalled of late. According to Schaumburg, Ill.-based Nielsen, overall cereal sales were down 2.2 percent for the 52 weeks ended Nov. 21, 2015, with the ready- to-eat segment seeing a 3 percent sales decline. Even though "we all know that cereal has had a tough couple [of] years … the reality is this: Cold-cereal penetration in the U.S. still is hovering at about 90 percent," said Craig Bahner, president, U.S. morning foods at Battle Creek, Mich.-based Cereal Progression The morning staple aims for continued relevance. By Bridget Goldschmidt Kellogg Co., during an analyst day presentation last November. "Tose 90 percent of households buy on average nearly 21 boxes of cereal per year. … Tink about what can happen if we can get that consumer to buy just one more box of cereal." Bahner noted that the company's core cereal business — comprising Special K, Frosted Mini- Wheats, Raisin Bran, Rice Krispies, Frosted Flakes and Froot Loops — was up, thanks to Kellogg's eforts to drive category growth. Tis strategy includes product innovation, particularly in relation to Special K, which he described as "our biggest and most important cereal Consumers are looking for cleaner, less sugary foods. Granola fits that bill." —Aaron Anker, GrandyOats 38 | Progressive Grocer | Ahead of What's Next | February 2016

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