Fussy millennials shunning cold breakfast cereal

Millennials are no longer following their noses to a box of cereal in the morning, and that's slowly starving the breakfast cereal industry, according to a new report.

See Full Article

An article published in the New York Times this week suggests young people are largely responsible for a decline in cold breakfast cereal sales. Instead, millennials are embracing hot cereal, yogurts, breakfast sandwiches and smoothies as the new breakfast of champions, according to marketing experts.

The New York Times article cites a marked decline in cereal sales in the United States, from US$13.9 billion in 2000 to $10 billion last year. A similar decline has occurred in Canada, according to Statistics Canada. Canadians spent 22 per cent less on cereal in 2014 than they did in 2010, according to an annual average compiled by StatsCan. The cost of cereal also rose by an average of 7.8 per cent over that time.

"Almost 40 per cent of the millennials surveyed by (market researcher) Mintel for its 2015 report said cereal was an inconvenient breakfast choice because they had to clean up after eating it," the New York Times article says.

It goes on to suggest that marketers are still searching for ways to capture the attention of the elusive millennials, who couldn't be bothered to wash out a bowl of lukewarm milk and Shreddies bits.

Market research experts at Mintel say the breakfast food industry is losing some its snap, crackle and pop because of a drop-off in the popularity of cold cereals. In an August 2015 report on American breakfast cereals, Mintel said consumers are shunning cold cereals because they believe them to be "too processed and not convenient enough."

The company suggests manufacturers should focus their efforts on healthier, more natural alternatives that are easier to prepare, rather than pushing "magically delicious," (i.e. sugary) processed products. Mintel also recommends cereal brands double down on the nostalgia factor, as that continues to drive sales among the baby boomer generation.

Several long-standing cereal brands have already gone that route with their packaging and marketing. Last year, for instance, General Mills announced a line of throwback cereal boxes, featuring old-fashioned cartoon mascots from the 1970s and '80s. The boxes resurrected mascots for Cheerios, Cinnamon Toast Crunch, Cocoa Puffs, Honey Nut Cheerios and Lucky Charms.

Cereal manufacturers have also started to promote cereals with a more home-spun, all-natural, nutritional image. General Mills, for instance, announced a brand called Annie's Homegrown Organic Cereals earlier this month.

These bunnies will start hopping to the cereal aisle in April! https://t.co/PjSWqJtPFS@annieshomegrown#cerealpic.twitter.com/YawgOSzbg3

— General Mills (@GeneralMills) February 16, 2016

Other cereal brands have also tried to promote a nutritious image.

It's #HeartHealthMonth. When you eat Cheerios, you do your heart some good: https://t.co/U7xCKh3fy2pic.twitter.com/3b820UJqse

— Cheerios (@cheerios) February 6, 2016

Kellogg's acknowledged the New York Times article in a tweet on Thursday. "Look out, millennials!" the company tweeted. "We're reimagining cereal with new flavours and unique ingredients #StirUpBreakfast."



Advertisements

Latest Economic News

  • Company sold turf product after learning of defects: report

    Economic CTV News
    WOODBRIDGE, N.J. -- The country's leading maker of artificial sports turf sold more than 1,000 fields to towns, schools and teams nationwide after its executives knew they were falling apart faster than expected and might not live up to lofty marketing claims, according to an investigation by a news organization. Source
  • Montreal-based company sold turf product after learning of defects: report

    Economic CTV News
    WOODBRIDGE, N.J. -- The country's leading maker of artificial sports turf sold more than 1,000 fields to towns, schools and teams nationwide after its executives knew they were falling apart faster than expected and might not live up to lofty marketing claims, according to an investigation by a news organization. Source
  • U.S., China, EU, others fail to reach environmental goods deal

    Economic CTV News
    GENEVA -- Forty-six countries including the U.S., China and European Union nations failed Sunday to agree on a list of "environmental goods" like solar-powered air conditioners or LED light bulbs that could be targeted for lower tariffs. Source
  • Venezuela to issue new bills with current ones worth no more than 2 U.S. cents

    Economic CTV News
    BOGOTA -- Venezuela said it will issue higher-denominated bills as triple-digit inflation and a currency meltdown leave the country's largest note worth just around 2 U.S. cents on the black market. The central bank said in a statement Saturday that six new bills ranging from 500 to 20,000 Bolivars will begin circulating on Dec. Source
  • Six things to know about the bovine TB outbreak: CFIA's chief veterinary officer

    Economic CTV News
    OTTAWA -- More than 22,000 cattle at farms in Alberta and Saskatchewan are quarantined due to bovine tuberculosis, causing hardship for ranchers and millions in compensation payments and other costs. The Canadian Food Inspection Agency is testing cattle to determine the extent of the outbreak and the source of the contagious bacterial infection. Source
  • U.K.'s Boris Johnson downplays EU payment suggestions

    Economic CTV News
    LONDON -- Britain's foreign secretary has dismissed suggestions that London would be willing to pay into European Union coffers following an exit from the bloc, describing the idea as speculation. Boris Johnson's comments to the BBC on Sunday came after Britain's minister for leaving the European Union, David Davis, said that the country might be willing to pay in return for access to the single market. Source
  • Beyond the hippie stereotype: A closer look at the opposition to Trans Mountain

    Economic CBC News
    A conversation about tripling your money on a tech start up might seem out of place at an anti-pipeline march, but not so in Vancouver. When thousands of protestors made their way from City Hall to downtown a few weeks ago, chatter about stock options and where to go for ramen after the rally could be heard alongside the traditional indigenous drumming and chants of "Hey, hey, Trudeau, Kinder Morgan's got to go". Source
  • Using Air Miles for overseas flights? It may not be a great deal

    Economic CBC News
    You've saved your Air Miles for a well-deserved overseas adventure — but don't pack your bags just yet, as you may be in for a surprise. Seventeen million Canadians collect Air Miles reward points on everything from groceries to gas. Source
  • Airbnb drops lawsuit against NYC over new state law

    Economic CTV News
    NEW YORK -- Airbnb has agreed to drop a lawsuit against New York City over a new state law it said could have deterred hosts and impaired its revenues. The settlement was reached Friday. Source
  • France pledges $30 million for wartime heritage protection

    Economic CTV News
    ABU DHABI, United Arab Emirates -- France committed $30 million toward protecting cultural heritage sites during wartime on Saturday, a first step in the creation of an international fund aimed at preventing destruction like that carried out by Islamic State militants. Source