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

  • BlackBerry expecting US$940 million in Qualcomm dispute resolution

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry Ltd. (TSX:BB) says it will receive US$940 million from Qualcomm by May 31 to settle a dispute over royalty payments. An arbitrator sided with BlackBerry in April, and announced an interim award of US$814.9 million plus additional amounts for interest and legal fees. Source
  • World shares weaken ahead of G7 meeting; oil bottoms out

    Economic CTV News
    HONG KONG -- World stock markets weakened Friday as investors awaited the upcoming G-7 summit and oil prices rebounded somewhat as markets shook off initial disappointment over a production cut deal. KEEPING SCORE: European shares opened lower, with France's CAC 40 down 0.8 per cent to 5,297.13 and Germany's DAX lost 0.5 per cent to 12,561.85. Source
  • OPEC decision stabilizes oil prices, but for how long?

    Economic CBC News
    In one of the least surprising OPEC meetings in a while, members of the cartel of oil-exporting countries and their non-member allies agreed to extend oil production cuts on Thursday, which will support the price of oil and should continue to help pave the way for Alberta's economic recovery. Source
  • The case for BlackBerry at $45 US a share

    Economic CBC News
    BlackBerry Ltd. shares have been on a hot streak — rising more than 60 per cent in recent weeks — and one technology analyst thinks some of the company's new products have the potential to help push the stock to $45 US in three years. Source
  • Malicious hackers say they demanded $50,000 ransom for stolen Bell data

    Economic CBC News
    A pair of malicious hackers say they demanded that Bell pay a $50,000 US ransom to prevent stolen customer data from being shared online, according to a person claiming responsibility for the theft. That person — who communicated with CBC News via encrypted chat using the handle "exodus" — says a ransom email was sent to Bell on May 5, detailing the extent of the breach and the thieves' terms. Source
  • Kinder Morgan announces final investment decision on Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering. The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced on Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO. Source
  • Amazon opens first brick and mortar New York bookshop

    Economic CTV News
    Online retail giant Amazon on Thursday opened its first brick and mortar bookstore in New York, selling a limited range of its highest-rated books and letting customers browse products as in times gone by. Amazon, which launched as an online bookseller in 1995 but which now sells everything from designer clothes to groceries, bided its time before venturing into the US cultural capital. Source
  • Ontario threatens its own protectionism in fight against Texas Buy American bill

    Economic CTV News
    TORONTO - Ontario has hired lobbyists in Texas and is threatening protectionist measures of its own as it tries to convince state officials not to pass a Buy American bill. Premier Kathleen Wynne claimed victory last month after a successful Ontario push to stop similar provisions in New York state. Source
  • Alberta Energy Regulator to reconsider Suncor tailings plan it rejected

    Economic CTV News
    CALGARY -- Alberta's energy watchdog has agreed to reconsider its rejection of a plan by oilsands giant Suncor to clean up its tailings ponds. The Alberta Energy Regulator denied the Calgary-based company's applications in March, saying they did not satisfy requirements and a new proposal was needed. Source
  • Bank CEOs say Home Capital issues not widespread

    Economic CTV News
    TORONTO -- The CEOs of two of Canada's biggest banks say liquidity troubles at mortgage lender Home Capital are not indicative of a broader problem, but they are monitoring their mortgage portfolios in light of concerns about high house prices. Source