Milling & Baking News - January 29, 2019 - 30

Hot Cereal Update

Hot cereal resonates with consumers
Convenience coupled with more flavorful options spurs category gains in 2018

QUAKER OATS CO. AND EARNEST EATS

Dollar sales in Quaker's base hot cere- from TreeHouse Foods, Inc. for approxit's that time of year again. Time for hot
cereal to regain a prominent place in al/oatmeal business, which accounts for mately $32 million in cash.
"We are delighted to welcome the Mc50% of total dollar sales in the category, inthe breakfast daypart.
In recent years hot cereal manufac- creased 4.6% in the 52-week period ended Cann's brand to the B&G Foods family,"
turers have made it easier than ever for Dec. 30, according to I.R.I. Also perform- Robert C. Cantwell, president and chief
consumers to eat oatmeal. Nearly every ing well in the period was Quaker Lower executive officer of B&G Foods, said when
company in the category now offers some Sugar, up nearly 4%; Quaker Overnight McCann's was acquired in July 2018. "Mcversion of a microwavable cup or pouch. Oats, up 20%; Quaker Oats, up 12%; and Cann's is an excellent complement to our
Now, companies must find other ways to Quaker Select Starts, up 6%. Quaker Real existing portfolio of brands, including our
Medleys, meanwhile, sustained a 26% Cream of Wheat hot cereal brand. This
differentiate.
acquisition is another examIn the 52 weeks ended Dec.
ple, along with our acquisi30, 2018, dollar sales in the hot
tions of Green Giant, Spice
cereal/oatmeal category toTop-selling hot cereal vendors
Islands and other spices and
taled $1,314,638,346, up 1.3%
Dollar
% change
Unit
% change
seasoning brands, Victoria
from the same period a year
sales from year ago sales from year ago
and Back to Nature, of our
ago, according to data from
Quaker Oats Co.
$798,602,893
+1.8
279,654,262
-
efforts in recent years to acInformation Resources, Inc., a
B&G Foods, Inc.
$73,164,315
+1.1
20,811,378
-1.6
quire better-for-you brands
Chicago-based market research
Post Holdings, Inc.
$45,590,409
+7.5
15,731,450
+5.7
that taste great and resonate
firm. Unit sales, though, were
Bob's Red Mill Natural Foods $43,915,173 +11.3
11,384,077 +13.3
with today's consumer."
down 0.7% to 484,549,330.
Private label
$274,202,750
-2.6
130,862,101
-4.7
Post Holdings, Inc., St.
Each of the top four hot cereal
Louis, was a strong performmakers experienced an increase
52 weeks ended Dec. 30, 2018
Total U.S. multi-outlet with c-store (grocery, drug, mass market, convenience, military and
er in the hot cereal category
in dollar sales in the 52-week peselect club and dollar retailers)
during 2018, posting dollar
riod, led by an 11% increase in
Source: Information Resources, Inc.
sales of $45,590,409, up 7.5%
sales at Bob's Red Mill Natural
from the same period a year
Foods, Milwaukie, Ore.
The only drag on the category came decline in dollar sales in the period, while ago, according to I.R.I. It has been four
years since Post acquired MOM Brands
from private label, which experienced a Quaker High Fiber fell 6.4%.
PepsiCo executives have credited the and its Better Oats oatmeal brand, and the
2.6% decrease in dollar sales in the period, to $274,202,750, according to I.R.I. strength within Quaker's hot cereal busi- brand is delivering strong gains for Post.
Better Oats Oat Revolution oatmeal
Private label unit sales also dipped, fall- ness to a strong marketing campaign
highlighting the functional benefits of posted dollar sales growth of nearly 5%
ing 4.7% in the 52 weeks ended Dec. 30.
Quaker Oats Co., the Chicago-based oatmeal and innovation like Simple & in the 52 weeks ended Dec. 30, while Betsubsidiary of PepsiCo, Inc. and the cat- Wholesome organic multigrain hot cere- ter Oats Raw Pure and Simple increased
egory's largest player, posted a 1.8% al. Quaker Simple & Wholesome hot ce- almost 8% in the period. Mom's Best
increase in sales during the period, to real contains between 27 and 34 grams of Naturals old fashioned oatmeal also per$798,602,893. The company offers a wide whole grains per serving and is certified formed well in the period, experiencing a
range of products in the hot cereal cat- U.S.D.A.-organic and Non-GMO Project 6% increase in dollar sales.
Earnest Eats, Solana Beach, Calif., is
egory, and as a result offered a mixed bag verified. The hot cereal is available in
of results across individual product lines. three varieties: date and almond, red qui- one of the newer players in the hot cereal
category. The company offers a portable
noa and buckwheat and flax.
The second largest player in the hot breakfast option in its Protein + Probicereal category is B&G Foods, Inc., Par- otic Oatmeal cups. Featuring a blend of
sippany, N.J. B&G generated dollar sales ancient grains, including organic, whole
of $73,164,315 in the 52 weeks ended Dec. rolled oats; puffed quinoa; and amaranth,
30, up 1.1% from the same period a year along with grass-fed whey protein and
ago, according to I.R.I. The gain primarily probiotic cultures, the cups contain at least
was driven by the Cream of Wheat brand, 15 grams of protein each. The oatmeal also
which posted dollar sales growth of 1.3%, is available in resealable 10-oz bags.
Earnest Eats also offers Superfood
which more than offset a decline of 1.1%
Oatmeal, which comes in 2.35-oz cups in
in the Cream of Rice brand.
B&G Foods boosted its presence in the such varieties as maple + almond + cinhot cereal category last summer with the namon and apple + cinnamon + flax. MBN
acquisition of McCann's Irish Oatmeal
- Eric Schroeder

BOB'S RED MILL NATURAL FOODS

30 / January 29, 2019

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Milling & Baking News - January 29, 2019

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