Milling & Baking News - February 4, 2014 - 26

Hot Cereal Update 

Portioned for prosperity
Hot cereal makers turn to portable cups, portion-control packaging to drive growth

t may be hard to imagine that instant oatmeal and hot cereal could
get much more convenient than the
traditional single-serve packages that
have dominated the market for years.
Consumers have been able to grab a
bowl, mix the oatmeal with water or
milk and set the microwave for 2 minutes or less to get a steaming hot bowl
of breakfast.
But in recent years several hot cereal manufacturers have shifted away
from the package and provided a disposable cup, giving consumers even
more convenience. The trend has
helped heat up the category.
In the 52 weeks ended Dec. 29, 2013,
dollar sales of the hot cereal category
totaled $1,247,208,000, up 2.4% from
the same period a year ago, according
to Information Resources, Inc., a Chicago-based market research firm. Unit
sales also have increased, rising 4% to
464,395,600.
The Quaker Oats Co., a division of
Purchase, N.Y.-based PepsiCo, Inc., is
the overwhelming leader in the hot
cereal category with dollar sales of
$709,100,800, good enough for a nearly 57% share of the segment. In the 52
weeks ended Dec. 29, Quaker's dollar
sales were up 1.4%, while unit sales
rose 5%.
Quaker Real Medleys have been a
big "win" for the company since their
launch nearly two years ago. Combining fruit or nuts with oatmeal in a
portable and portion-controlled cup,
the product initially was geared toward women looking for a wholesome
breakfast, but judging by sales figures,
the product has been well received by
a much broader audience.
In the 52 weeks ended Dec. 29, dollar sales of Quaker Real Medleys were
$44,910,080, up 85% from the same period a year ago. Real Medleys initially
were available in apple walnut, summer berry, peach almond and cherry pistachio
varieties, and Quaker also
recently has added a blueberry hazelnut flavor. Each
2.57-oz cup has 290 calories
and 5 grams of fiber.
Another successful hot cereal product being marketed
by Quaker features a different type of convenience. Introduced in April 2013, Perfect
26 / February 4, 2014 Milling & Baking News

Portions is a multi-serve instant oatmeal without added sugar that comes
in a re-sealable package. The oatmeal
is available in two flavors: cinnamon
and maple.
"More than half of moms say they
have made multiple dishes during a
meal in order to satisfy each family
member's taste preferences," Andrew
Sutherland, senior director of marketing for Quaker Oats, said when
the product was launched last year.
"Quaker Perfect Portions allows parents to easily tailor different oatmeal
options for their families while knowing they are getting healthy fuel for
energy to take on their everyday adventures."
Both varieties of Perfect Portions
contain 2 grams of soluble fiber per
45-gram serving.
In the 52 weeks ended Dec. 29, dollar sales of Perfect Portions totaled
$4,922,162 on unit sales of 2,561,542,
according to I.R.I.
Kellogg looks to nourish
Also last spring, The Kellogg Co.,
Battle Creek, Mich., continued its
march beyond the traditional readyto-eat cereal market with the launch
of Special K Nourish, a line of hot cereal and bars. With such ingredients as
quinoa, fruit, nuts and seeds, the individually packaged products offer both
portability and nutrition benefits.
Packaged in single-serve microwavable cups, the hot cereals contain
a whole grain blend of quinoa, oats,
wheat and barley, plus nuts and fruit

in a removable cap that may be stirred
in. In maple brown sugar crunch,
cranberry almond and cinnamon raisin pecan varieties, the products contain 5 grams of fiber and 8 grams of
protein per serving.
In less than a year on the market, Special K Nourish generated
$8,978,826 in dollar sales in the 52

weeks ended Dec. 29, according to
I.R.I.
Better oats, better product?
As the Better Oats instant oatmeal
brand enters its fourth year on the
market, Red Engine Foods (a unit of
Minneapolis-based MOM Brands)
continues to push its way up the list

of leading hot cereal makers. With dollar sales of $20,399,570 in the 52 weeks
ended Dec. 29, Red Engine Foods still
has work to do, but appears headed on
the right track.
The company's Better Oats Revolution line posted dollar sales of
$10,611,200 in the 52 weeks ended Dec.
29, according to I.R.I., up 22% from the
same period a year ago. Last summer,
the company added to the line with
the introduction of three new steel cut
instant oatmeal varieties, a product
the company described as "one of the
fastest cooking steel cut oats products
on the market."
Available in three varieties - maple
and brown sugar, classic and apples
and cinnamon - the steel cut oats
have flaxseed and carry the 100%
Whole Grain Stamp from the Whole
Grains Council. The oatmeal also includes a built-in measuring cup pouch.
"This innovative new oatmeal is
great for busy people who want the
taste and texture of slow-cook steel
cut-oatmeal, as well as the speed of
cooking by microwave," said Linda
Fisher, director of corporate communications for MOM Brands.
Also within the Better Oats line is
"Fit." Considered a good source of
fiber with 100 calories, Better Oats Fit
oatmeal had sales of $4,020,400 in the
52 weeks ended Dec. 29, up 56% from
the same period a year ago. MBN
- Eric Schroeder
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - February 4, 2014

Table of Contents for the Digital Edition of Milling & Baking News - February 4, 2014