Despite experiencing a slight decline of 0.4% in the past year, the cereals category is still a nice little earner for independent c-stores, with more than 95% of the UK population buying into the category, according to Steph Okell, senior marketing manager for Quaker at brand owner Pepsico.
Lija Seja, category management lead at Kellogg’s, says that while cereals feature in 61% of breakfasts in the UK, the category is under increasing pressure from alternative formats such as breakfast bars and porridge.
Big names remain vital for the category, with Nestlé quoting research that shows 86% of consumers cite brand as the most important factor when buying cereals. On the other hand, price is also a big factor for the average cereals shopper, which Seja says is behind Kellogg’s strategy of offering a core range of recognisable brands in £2.99 price-marked packs (PMPs), including Crunchy Nut, Corn Flakes, Coco Pops, Special K and Rice Krispies.
Protein power
A further key trend is health, including the ever-increasing popularity of protein-enhanced foods, which has been seen in the cereals category just as in many other segments. Okell at Quaker anticipates that the mainstream popularity of protein will continue, with 32% of consumers seeing high protein as important when buying breakfast cereals. She says research from Mintel suggests the hot cereal segment will see 8% volume growth between 2017 and 2022, with value sales predicted to grow by 18% over the same period.
In June last year, Pepsico added Quaker Oat So Simple Protein Sachets in Original and Cinnamon flavours to tap into this trend. In early 2018, Kellogg’s launched a Special K Protein cereal bar made of “plant-based” ingredients like nuts, seeds, grains, soy and almond butter. Sarah McFall, Special K snacks brand manager, says: “Nut butters and products bearing the protein label have appeared everywhere over the past few years and it is evident these are more than just trends.”
Snacks factor
Nature Valley launched a duo of Nut Butter cereal bars in September last year, in Peanut and Almond varieties. Arjoon Bose, Northern Europe lead for snacking at Nature Valley owner General Mills, says: “Breakfast is still the most popular time for cereal bar consumption, accounting for 65% of eating occasions. In trials, 90% of consumers agreed that Nature Valley Nut Butter bars ‘taste great’, so we are confident they will appeal to consumers in need of a morning snack.”
Alpen added two new flavours – Strawberry, Cranberry & Raspberry and Blueberry, Cherry & Almond – to its no added sugar muesli range in March this year. Zoe Brimfield, senior brand manager at Alpen, says: “Many perceive muesli as being a bit bland and boring. However, we believe the combination of a great-tasting breakfast and low sugar levels will appeal to the modern consumer.”
Vegan offerings
Seja at Kellogg’s agrees that health is a continuing trend, while consumers are also broadening their repertoires and seeking new experiences. In December last year, the brand announced it would be launching a range of organic, vegan-friendly and no added sugar cereals under the WK Kellogg brand. The range includes: two no added sugar granolas in Apricot & Pumpkin Seeds and Coconut, Cashew & Almond variants; two Super Grains granolas in Cocoa, Cashew, Almond & Spelt and Cranberry, Sultana & Spelt variants; and two Organic Wholegrain Wheats in Original and Raisin variants. Emma Birks, brand manager for WK Kellogg, says: “We have created this range to suit changing consumer diets and people increasingly seeking more plant-based foods. The brand will satisfy consumers searching the aisles for organic, vegan-friendly foods with natural flavourings and the no added sugar label.”
Get up and go
Breakfasts eaten at home still account for the lion’s share of the occasion, says Okell, although on-the-go breakfasts are growing at 14%. She says: “People’s lives are becoming increasingly busy and on-the-go solutions are one way to help make their mornings easier.” Quaker Oat So Simple on-the-go pots cater for this demand, she says, as a “wholesome, satisfying and portable” breakfast to kick-start the day.
The brand extended its range of Porridge to Go Breakfast Squares last month, adding a cinnamon flavour to the existing Golden Syrup and Strawberry, Raspberry & Cranberry variants launched last year. In addition, Pepsico added a duo of Quaker breakfast drinks in Vanilla and Red Berries flavours. Okell says these two ranges will help retailers target health-conscious families and smaller households who are on the lookout for convenient solutions to fit their busy lifestyles.
