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 Cereals America no longer loves

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Losthalo51
Clayton Carmine
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PostSubject: Cereals America no longer loves   Thu Aug 04, 2011 10:52 pm

Consumption of ready-to-eat cereals began to decline in the early 1990s as prices of name-brand cereals rose along with the popularity of convenient breakfast foods such as bagels and toaster pastries. These trends continue.



Rise and shine

The average American spends an estimated 13 minutes a day preparing and eating breakfast, the meal that nutritionists consider to be the most important.

Cold cereal, an option that's been around for 100 years, has been falling out of favor over the past two decades or so. Sales of ready-to-eat cereals fell 2.5%, to $6.4 billion, during a recent 12-month period, a time of rising grain costs, according to Symphony/IRI, which monitors sales at grocery stores and other retail outlets.

The longer-term trend represents a change in fortunes for the nation's leading cereal-makers, including Kellogg (K), General Mill (GIS) and Ralcorp Holdings (RAH).

Following are six cereal brands that have been hit particularly hard by American's changing breakfast tastes.

Corn Flakes

Company: Kellogg

Introduced: 1894

12-month sales, through April: $107 million

Change during that period: -5.86%

Decline in sales from 2007 to 2010: 3.8%

Corn Flakes were developed by Dr. John Harvey Kellogg, the superintendent of the Battle Creek Sanitarium, as a way to promote the benefits of a vegetarian diet. It's an American classic, like apple pie. But the brand is under pressure from lower-cost private-label versions, as well as organic alternatives.

Cheerios

Company: General Mills

Introduced: 1941

12-month sales, through April: $282 million

Change during that period: -3.86%

Decline in sales from 2007 to 2010: 6.9%

Babies and toddlers have been eating Cheerios for generations. But birthrates in the United States have fallen, and the market for healthful breakfast alternatives has exploded in recent years, ratcheting up the pressure on this venerable brand.

Raisin Bran

Company: Kellogg

Introduced: 1926

12-month sales, through April: $115 million

Change during that period: -8.4%

Decline in sales from 2007 to 2010: 7.9%

Raisin Bran is the victim of its own success, having spawned legions of knock-off brands. Many of them are made by private-label makers and sold for a fraction of the cost of the original. Price-conscious consumers probably can't tell the difference.

Rice Krispies

Company: Kellogg

Introduced: 1928

12-month sales through April: $121 million

Change during that period: -8.7%

Decline in sales from 2007 to 2010: 10.3%

The cartoon characters Snap, Crackle and Pop are among the most recognized brand icons. Over the years, Rice Krispies morphed from a healthful way to start the day to a snack product; it's kind of tough to argue that something covered in butter, melted marshmallows or chocolate is good for you, no matter how delicious.

Corn Pops

Company: Kellogg

Introduced: 1951

12-month sales, through April: $73.8 million

Change during that period: -19%

Decline in sales from 2007 to 2010: 12.8%

Corn Pops are a tough sell. Many parents are not thrilled when their children ingest sugary cereals. Adults are also shunning the sugary cereal.

Special K

Company: Kellogg

Introduced: 1956

12-month sales, through April: $88.9 million

Change during that period: -1.4%

Decline in sales from 2007 to 2010: 15.9%

Special K was one of the first diet foods. It's still a good way to start your day, nutritionally speaking. But the cereal is vying for attention in a very crowded market.

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PostSubject: Re: Cereals America no longer loves   Fri Aug 05, 2011 4:32 am

lol that's alot of stats on cereals, I stick with the healthier option though, bacon on toast Very Happy

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PostSubject: Re: Cereals America no longer loves   Fri Aug 05, 2011 6:49 am

i go with a healthy option aswell steak and eggs Very Happy
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PostSubject: Re: Cereals America no longer loves   Today at 12:32 am

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