Post Holdings ventures beyond cereal aisle with honey bunches of oats expansion
USA- Post Holdings is set to extend its beloved Honey Bunches of Oats brand into new categories in a move to capitalize on the soaring popularity of oat-based products and tap into evolving consumer preferences.
The St. Louis-based food giant has partnered with brand licensing firm Brandgenuity to explore a diverse array of possibilities, including snack bars, baked goods, frozen items, and even ice cream.
Leah Broeders, head of licensing at Post’s Post Consumer Brands division, expressed enthusiasm about the timing of this expansion, noting the surging demand for oats and the enduring appeal of the Honey Bunches of Oats brand, particularly among millennial families.
With oats gaining traction as a versatile and nutritious ingredient, Post sees an opportunity to leverage the brand’s strong reputation and extend its reach into new markets.
Last year, Post took a significant step towards diversifying the Honey Bunches of Oats lineup with the launch of granola crisps, catering to the on-the-go snacking trend.
This move signaled Post’s commitment to innovation and adaptation to changing consumer habits, setting the stage for further expansion beyond the traditional cereal aisle.
Honey Bunches of Oats boasts an impressive brand awareness exceeding 93%, with approximately one in five households having a box in their pantry. Leveraging this existing consumer loyalty, Post aims to seamlessly integrate the brand into various consumption occasions, including snacking and baking, offering consumers more ways to enjoy their favorite cereal.
Post’s initiative to extend its brands into new categories is part of a broader trend among food manufacturers seeking growth opportunities in a competitive market. Last year, Post introduced Pebbles cereal into the frozen aisle with waffles, demonstrating its willingness to innovate and adapt to changing consumer preferences.
Additionally, the expansion of the Bob Evans sides platform into refrigerated vegetables underscores Post’s strategic approach to portfolio diversification.
The rise of brand licensing deals underscores their increasing importance as a revenue stream for consumer packaged goods (CPG) companies.
By leveraging well-established brands in new categories, companies like Post can not only drive additional sales but also enhance brand equity and relevance in a rapidly evolving market.
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