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Breakfast is big business. Americans gobbled up $8.5 billion worth of ready-to-eat cereal over the past year, according to IRI, a market research firm. Just four companies – General Mills (GIS), Kellogg (K), Post Holdings (POST) and Quaker Foods, a division of PepsiCo (PEP) – collectively accounted for $7.3 billion of those sales.
Although cereal sales have been stagnant of late – down 1.4% year-over-year – growing interest in cereal as a snack among younger consumers could goose demand. Market research firm Mintel found that 56% of millennials say they’ve eaten cereal as a snack at home, compared with just 32% of baby boomers.
“While breakfast is the most common occasion for eating cereal and nearly universal across age groups, snacking on cereal may offer greater potential for reinvigorating category growth, especially among younger adults,” says John Owen, an analyst with Mintel.
Michigan’s Cereal City
Frank Radowski spoons the last drops of milk from his cereal bowl and watches as his 4-year-old twins Nathan and Anna reach eagerly for toaster pastries handed out by a volunteer at the World’s Longest Breakfast Table in Battle Creek, Mich.
“I remember coming here as a kid,” says Radowski, of Grand Haven, Mich. “I wanted to bring my kids so they could experience it, too.”
Frank’s mom, Jan Ploehn, watches the twins’ faces light up as a life-size Tony the Tiger passes their table and waves a paw during Battle Creek’s annual Cereal Festival. “It’s our summer fling,” says Ploehn, a Kellogg Co. employee for 26 years before her retirement in 1999. “I hope when these kids grow up, they’ll bring their children here, too.”
Cereal is more than just a breakfast food in Cereal City; it’s a way of life. For more than 100 years, Battle Creek (pop. 53,364) has been the hub of breakfast cereal production in the United States.
Battle Creek—home to the Kellogg Co., the Post Cereals division of Kraft Foods, and Ralston Foods—celebrates its cereal heritage each spring with the Cereal Festival.
Breakfast cereals
Consumption of breakfast cereals
The consumption of RTE breakfast cereals in the United Kingdom has shown a steady growth from quite a small amount before World War II to about 4.2 kg/person/an. in 1972, increasing further to 5.0 kg/person/an. in 1978, and to 6.5 kg/person/an. in 1988.
The consumption of oat products for hot cereals in the United Kingdom was 0.6 kg/person/an. in 1984, but increased to 0.9 kg/person/an. in 1988, possibly in response to the claim that oat bran has a blood-cholesterol-lowering effect.
The total tonnage of packaged breakfast cereals marketed in the United Kingdom in 1988 was 383,758 tonne, of which 38% was wheat based, 29% maize based, and the remainder based on other cereals or on a mixture of cereals (Business Monitor, 1989).
The average consumption of breakfast cereals (RTE plus hot) in the United States in 1971 was about 3.4 kg/person/an. Of the cereals used, wheat, bran or farina comprised about 37%, oatmeal or oat flour 30%, maize grits 22%, and rice 11%. However, by 1985, the consumption of RTE cereals alone had increased to 4.1 kg/person/an.
(Anon., 1986), slightly lower than in the United Kingdom, with the consumption of maize-based RTE cereals in the United States increasing from 2.72 to 3.63 kg/person/an. between 1970 and 1980. Between 1974 and 1983 domestic consumption of RTE cereals in the United States grew by about 2% per annum, and growth increased further to 3.3% per annum between 1983 and 1985.
Breakfast—Forms, ingredients, and process flow
Breakfast cereals or ready-to-eat (RTE) cereals are grains, primarily corn, wheat, rice, and/or oats, processed with added flavor and fortified with vitamins and minerals. They are convenient and relatively shelf stable and typically consumed as the first meal of the day (to break the fast).
There are two major types of breakfast cereals based on preparation before consumption—cold cereals and hot cereals. Cold cereals are the most convenient and are consumed immediately after mixing with milk, yogurt, or fruit. Hot breakfast cereals, originally made from oats and wheat, required cooking by the consumer before they were ready for consumption.
There are several forms of cold cereals that are available: (1) toasted flaked cereals (corn flakes, wheat flakes, and rice flakes), including extruded flakes, (2) puffed intact grains or extruded pellets, (3) baked shredded whole grains or extruded grain fractions, (4) granola and muesli-type cereals, and (5) preprocessed hot cereals.