Breakfast cereal giants tap into health & wellness trend to bolster sales

GLOBAL – Breakfast cereal giants like WK Kellogg and General Mills are currently planning ways to bring the once-essential item, which is currently no longer the breakfast staple after years of declining sales, back to the mainstream.

For years, the category has been negatively impacted by changes in morning routines, growing expenses, and the sugar-laden perception of cereal.

However, those decreases have recently intensified as consumers’ concerns about inflation have grown, and businesses are prioritizing turning around the cereal sector.

WK Kellogg, the manufacturer of Froot Loops, saw a 6.2% drop in first-quarter sales over the previous year.

Its rivals are experiencing a similar situation. Post Holdings, the company behind Fruity Pebbles and other brands, recently closed two cereal mills due to challenges in the cereal market, and General Mills CEO Jeff Harmening informed investors in March that cereal’s performance was not excellent.

“There’s a pocket of consumers that are spending for what they perceive as better for them, and are willing to pay essentially whatever necessary to get that type of product,” Jeff Zadoks, chief operating officer of Post Holdings, told investors this month.

Large corporations are relaunching well-known brands with reduced sugar or more protein choices in an effort to target the health-conscious consumer base. For example, General Mills unveiled Cheerios Protein, while Kellogg unveiled Special K Protein.

Additionally, businesses are investing more in marketing and redesigns to change the perception of cereal as unhealthy or sugary.

The U.S. Department of Health and Human Services (HHS) and the U.S. Food and Drug Administration (FDA) recently announced new measures aimed at phasing out all petroleum-based synthetic dyes from the nation’s food supply as part of the administration’s broader commitment to Make America Healthy Again.

WK Kellogg plans to concentrate more on health and wellness brands, including Special K and Kashi, which is being relaunched.

Consumer interest in nutrition and health is more than just a trend, according to Kellogg CEO Gary Pilnick, and the company is speeding up plans to capitalize on those healthier qualities.

“As we’re seeing a shift in the category, we need to shift with it. We do believe the entire cereal category should be perceived better from a health perspective. While there are smaller brands in the market that are winning, we could do that, too,” said Pilnick.

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