RESEARCH SPOTLIGHT
Cereals: Reaching Beyond Breakfast The majority of households report consuming breakfast cereals, but retaining core
customers and offering new usage suggestions will be key to the category's future growth. BY EVA MESZAROS
W
ith a household penetration rate in excess of 90 percent, breakfast cereals generated $10.2 billion in total U.S. sales for 2011. The category, however, has been in decline since 2009, possibly due to chal- lenges in attracting new consumers. Mintel's 2012 report "Breakfast Cereals—U.S." notes the importance of manufacturers and retailers retaining their core cereal consumer base, of which households with children are a key component, and developing new usage such as snacking. Mintel's report defines breakfast cereals to include ready-to-eat cereal and hot cereal for at-home consumption. RTE cold cereal includes any cereal (e.g., corn flakes, shredded wheat, toasted oat cereal) that is consumed dry or with dairy/non-dairy milk. Cold cereal is further divided by sugar content: low sugar (0–9.9 percent of recommended daily intake of 40 grams), medium sugar (10–15.9 percent of RDI), medium-high sugar (16–25.9 percent of RDI) and high sugar (26 percent or more of RDI). Hot cereal includes oatmeal, instant oatmeal, hot wheat and other grain products that must be heated before eating.
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