Shopper trends: cereal firms react as breakfast habits evolve

 

Mondelez has had success with Belvita in the UK

Major cereals manufacturers are reporting disappointing sales and there has been a decline in volume sales over the last few years.

It would be easy to think that this GBP1.3bn market, (US$2.14bn) (in the UK alone) had gone stale, but with pockets of growth and lots of innovation, this is one category that is certainly hotting up.

Hot cereals is one growth segment, with value sales up 83% in the last five years. Growth in porridge, for instance, has been driven by continued innovation as manufacturers respond to consumer demand for added convenience with new formats such as sachets and pots that provide more options for breakfast-on-the-go.

Brands such as Quaker Oatso Simple have tapped into this whilst also offering a wider range of new flavours. Alpen and Special K have also launched products into this buoyant sector. There is also growth in Germany, where manufacturers Kölln and Vitalis introduced single portion cereals, and Spain. The growing pots format has increased the price of cereal per kilo, driving value sales up 52% in the last five years in the UK.

Other breakfast alternatives such as cereal bars and breakfast biscuits are also tapping into ‘out of home’ breakfast occasions as consumers with busier lifestyles change what and where they eat. According to Mintel 16% of adults now eat breakfast out of home at least twice a week. This has led to the value of the total breakfast alternatives category growing by 25% over the last five years.

The breakfast biscuits category is another innovation that has been created by Kraft with its Belvita biscuit brand. With sales growing from zero to a GBP56m over the last three years, Belvita has become the number four breakfast brand overall in the UK. This category is also growing in Germany and Greece, where shoppers are reducing the volume of food that they buy in most other categories.

Other morning goods such as croissants are also showing growth of 12% year-on-year as British consumers continue to become more continental in their breakfast habits.

Cereal manufacturers are also developing breakfast drinks to try to offer consumers more convenient options. Weetabix is the latest manufacturer to launch such a line, following the introduction of similar products in the country from smaller firms Lacka Foods and Fresh Marketing.

So while the value of the ready to eat cereals segment grew by just 2% in value in the last five years, this was mostly the result of price increases by manufacturers. Volume sales for ready to eat breakfast options have declined as changing breakfast eating habits and more breakfast alternatives squeeze the size of the market.

Some brands, such as Kellogg’s Crunchy Nut, continue to outperform the sector by hitting key price points and performing well on promotions.

Even as the economy improves, changing shopper habits that are driven by less time mean that promotions that benefit the category and not just the manufacturers’ share of the market will be as important as continued innovation.

Source: justfood.com, Jason Stroud - IRI, 8th January 2014

Growing interest in Brioches - Google Trends

Google Trends shows a growing interest in brioche:

Sainsbury's ties store brand cereal sales to eBook giveaway

Those who buy a box of Sainsbury’s store brands children’s cereal can now download a free copy of children’s books. eBooks by Sainsbury’s has launched a two-year offer designed to encourage millions of children to read more, the U.K. grocer said in a statement.

Customers who buy the cereals either in-store or online can choose from four titles by two of the U.K.’s most celebrated children’s authors – “The Story of Tracy Beaker” and “Hetty Feather” by Jacqueline Wilson, and “Middle School: The Worst Years of My Life” and “I Funny” by James Patterson.
“I hope this offer will mean millions of children enjoy reading some of the best loved children’s books,” said Tim Lennox, managing director of eBooks by Sainsbury’s. “We sell over six million boxes of Sainsbury’s branded cereal every year so this is a great way to encourage children to read at no cost to their parents.”
Customers can go to Sainsbury's eBooks and enter the unique voucher code or scan the QR code, and then download the eBook to their tablet device or smartphone.
“We are delighted to be working with Penguin Random House U.K. and two of the biggest names in children’s books, Jacqueline Wilson and James Patterson. We look forward to offering our customers these brilliant titles in the largest giveaway of its kind,” Lennox said.

Source: storebrandsdecisions, 18th February 2014

It started with cronut - now it is Burgizza. The food hybrid craze sweeping the nation

 

From cronut (croissant-donut) and duffin (donut-muffin), food hybrids have already made the headlines but experimentation along the theme continues. Indeed, the trend appears to have spread to pizza too with Pizzaburger from Dr. Oetker in Germany, extending on from the fast food blurring theme seen recently in the category. As the name suggests, the product is a hybrid of pizza and burger. The two halves of crusty rolls with pizza toppings are designed first to be baked separately in the oven and then to be folded to a burger.

The product is a novelty in the German frozen retail market and in this form (two halves to be combined) also appears to be new to the global retail market. Interestingly, Japanese food service chain Pizza Little Party made the news by launching a limited edition “Megaburgerpizza” in their restaurants in Kyoto in September 2013. Furthermore, Canadian pizza chain Boston Pizza has launched a Pizzaburger which is more burger than pizza, comprising a half-pound burger patty wrapped in a pizza/a burger-stuffed pizza pocket.

Dr. Oetker’s Pizzaburger is positioned to be conveniently eaten by hand without the use of cutlery, which makes it a possible alternative to the much-loved pizza baguette in Germany. It is likely to engage younger consumers, the core frozen pizza-consuming demographic and obvious target group.

Across Europe, younger consumers are the most experimental. A third (29%) of 25-34 year old German and the same amount of French consumers show interest in pizza recipes influenced by other types of cuisine, eg Tex Mex or Turkish. What’s more, 33% of 16-24 French, 29% of German and 27% of of Italian consumers agree that there are not enough exciting flavours available.

The Dr. Oetker product might seem like a novelty but such experimental formats are increasingly likely to become the norm as frozen pizza manufacturers look to compete in a food market that is continuing to be driven by the snacking and meal blurring habits of younger consumers. Further innovation in the format of pizza can be expected. The highlighting of the Hasta La Pizza branded pizza on a stick product (pizza in the form of an ice cream bar), as one of the stand-out innovations from the recent Anuga exhibition, for example, suggests that the boundaries of the category are being stretched further.

Source: Mintel, Chris Brockman, 29th January 2014

 

Dr Schär Gluten Free Brioche

Dr Schär has launched a Brioche Loaf and newly rebranded Wholesome White and Seeded Loaves under the DS-gluten free brand.

These latest additions are in line with a wider business aim to grow the gluten free bread category with high quality, flavoursome, staple and specialist bread products.

The DS-gluten free Brioche Loaf is exclusively available in 50 Tesco stores across the UK from Monday 7 October.

The delicious continental style, sweet brioche, sliced loaf, which can be eaten straight from the pack, offers a source of fibre and is free from colours and preservatives making it an ideal breakfast option or enjoyed as a mid-morning/afternoon snack.

Emma Herring, Senior Retail Brand Manager of DS-gluten free says: “Brioche products have seen exponential growth in mainstream bakery over recent years1 and they command a lot of retail shelf space, so we are delighted to offer a gluten free option which will be a first for the UK market. We have worked closely with our parent company, Dr Schär, to stretch the boundaries in the free from sector. "

As the European leader in continental speciality bread, together we are well placed to utilise our business expertise to help make our vision for an authentic, light and golden brioche bread, a consumer reality for the UK market.”

In addition, the DS-gluten free ‘Fresher for Longer’ loaves have been rebranded ‘Wholesome Loaves’ following consumer research which revealed nutritional content was a key driver to customer purchase. The updated look and feel has helped secure a further listing for this popular product in 50 Tesco stores alongside currents stockists Morrisons, Waitrose and The Co-operative stores.
Available in both white and seeded varieties, this delicious and versatile bread has a 40 day shelf life. Both varieties contain wholesome and nutritious grains; millet and quinoa and 25% sourdough which gives the bread a lighter texture and is easily digestible. The flavoursome loaves are high in fibre and do not contain egg and milk. The 300g, soft and tasty loaves are expertly packaged for ultimate freshness and carry a re-seal sticker on-pack to help maintain product quality after opening.
“For most, bread is an essential part of a 21st century diet and gluten free consumers shouldn’t have to cut this food staple from their lives or accept poor quality substitutes,” remarks Emma. “Unlike current free from bread options, the multipurpose DS-gluten free Wholesome Loaves are made with innovative ingredients giving it that fuller flavour we know our customers are looking for.”

Source: fdiformum.net, 16th October 2013 by Mike Shields

Kingsmill comes out with 'Mini Toasts' snacks

Allied Bakeries has launched a range of snack products under its Kingsmill brand, called ‘Mini Toasts’. Currently being stocked at Tesco, the snacks are aimed at women aged 25-40 and families with children.

The products are made from oven-baked toast, and are currently available in two variants - Mature Cheddar & Red Onion, and Sea Salt & Balsamic Vinegar – in multi-pack bags (5x22g/RSP £1.59).

Allied Bakeries is promoting the range as afternoon snacks or lunchbox additions, highlighting that they contain less than 100 calories per bag.

They will be rolled out to other trade outlets in spring 2014.

NamNews - Wednesday 12th February 2014

Breakfast biscuits

Breakfast brands in the news

Breakfast Facts

Shoppers now believe branded and non-branded food is the same, just in different packaging

According to a new survey from Canadean Custom Solutions, 81% of UK adults are happy to buy private label grocery brands with many believing they are produced in the same factory as branded goods and it is only the packaging that is different. .

Approximately three in ten people (30%) say that at least half of the items they buy are store own brands. Biscuits (53%) is the product people are most likely to buy private label.

Canadean said that the recent years’ growth of private label brands should not only be tied to a downturn in consumers’ financial wellbeing. In reality, decades of investment in product portfolios and category management by retailers, combined with continually growing scepticism towards the food industry in general, means that the majority of consumers are unable to differentiate between branded and non-branded food and drinks.

The survey found that 55% of UK adults believe that the quality of private label food and drinks is just as good as branded alternatives. More worrying for branded manufacturers is that 46% of respondents believed that branded and non-branded food and drink is produced in the same factory and it is only the packaging that is different. Furthermore, 64% believe that any extra costs associated with branded food are down to advertising costs and non quality indicators. The results show that if branded manufacturers are to differentiate from private label alternatives, more needs to be done to leverage traits such as quality, authenticity and brand heritage.

Michael Hughes, Research Manager at Canadean Custom Solutions, said: “The figures show that continued growth of private label is not just a knee-jerk reaction by consumers to a recessionary environment, but the result of decades of investment in product portfolios by retailers. This has also been helped by an increasing level of scepticism towards the food and drink industry as a whole, with consumers ultimately believing branded and non-branded groceries are the same, with only different packaging and advertising resulting in different retail prices”.

NamNews - Friday 7th February 2014