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

  • Employers can pay women less based on past salaries, U.S. court rules

    Economic CTV News
    SAN FRANCISCO -- A federal appeals court says employers can legally pay women less than men for the same work based on differences in the employees' previous salaries. The decision by the 9th U.S. Source
  • BlackBerry smartphone with physical keyboard will be sold in Canada next month

    Economic CTV News
    TORONTO - Canadians will be able to buy a new BlackBerry-branded smartphone with a physical keyboard starting next month. The KEYone, a phone made in partnership between TCL Communication Technology Holdings Ltd. (TCT) and BlackBerry (TSX:BB), will be available for pre-order at some partners as of May 18. Source
  • Southwest Airlines to end practice of overbooking flights

    Economic CBC News
    Southwest Airlines says it plans to stop overbooking flights — an industry practice implicated in an ugly incident on a United Airlines flight that has damaged United's reputation with the flying public. Last year Southwest bumped 15,000 passengers off flights, more than any other U.S. Source
  • Toyota recalls 250K Tacoma pickups in North America

    Economic CTV News
    DETROIT -- Toyota is recalling about 250,000 small pickup trucks mainly in North America because the rear wheels have the potential to lock up, causing drivers to lose control. The recall covers certain Tacoma trucks from the 2016 and 2017 model years. Source
  • Judge orders Volkswagen to pay $2.1B in class-action suit over emissions scandal

    Economic CTV News
    TORONTO -- Members of a Canadian class-action lawsuit against Volkswagen can submit claims for reimbursement starting on Friday after an Ontario court approved a $2.1-billion settlement plan. The 105,000 people who purchased or leased certain Volkswagen or Audi vehicles with two-litre diesel engines that were caught up in an emissions cheating scandal will each receive a payment between $5,100 and $8,000, wrote Superior Court Justice Edward Belobaba in his judgment Wednesday. Source
  • Suncor CEO says more oilsands deals may appear in 'exodus' of foreign firms

    Economic CTV News
    CALGARY -- Suncor Energy (TSX:SU) has a potential opportunity to make further purchases in Alberta's oilsands if foreign multinationals continue to exit the sector, the oil and gas company's chief executive said Thursday. Suncor feels no pressure to buy but is watching closely for opportunities and has the financial strength to act, Suncor CEO Steve Williams said Thursday on a quarterly conference call with analysts. Source
  • Man removed from flight for using bathroom before takeoff

    Economic CTV News
    MILWAUKEE -- A Wisconsin man was removed from a Delta Air Lines flight after using the bathroom against crew instructions shortly before takeoff. Kima Hamilton says he urgently needed to use the bathroom April 18 while on a Milwaukee-bound plane in Atlanta. Source
  • European Central Bank says economy is 'increasingly solid'

    Economic CTV News
    FRANKFURT -- The European Central Bank kept its stimulus program and interest rates unchanged Thursday even though it conceded that the economy of the 19-country eurozone is becoming stronger. While indicators in recent weeks have pointed to much faster growth, there was little expectation the central bank would ease off its stimulus programs in the run-up to the second round of France's presidential election, in which anti-euro candidate Marine Le Pen is battling pro-EU front-runner Emmanuel…
  • N.B. mill taking 'time out' because of U.S. lumber tariffs

    Economic CTV News
    FREDERICTON - A New Brunswick sawmill owner says his mill is shutting down because of U.S. lumber tariffs. Danny Stillwell said Thursday he's taking "a time out," at least until a dispute over new tariffs is resolved. Source
  • Deutsche Bank executive says some 4,000 U.K. jobs could move

    Economic CTV News
    LONDON -- A key executive from Deutsche Bank has said nearly half of its 9,000 U.K.-based jobs could be shifted out of Britain because of Brexit as industry leaders express concern about the lack of clarity in the process. Source