Latest news with #CheeriosProtein
Yahoo
15-05-2025
- Business
- Yahoo
Breakfast cereal is in dire need of a makeover
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. After years of shrinking sales, cereal is no longer the star of breakfast. Now, food giants like General Mills and WK Kellogg are plotting how to get the former staple back on the table. Shifts in morning routines, rising costs and cereal's sugar-laden image have dragged down the category for years. But as consumers become even more concerned with inflation, those declines have recently accelerated, and companies are making it more of a priority to turn around the cereal category. At Froot Loops maker WK Kellogg, first-quarter sales declined 6.2% compared to last year. A similar story is playing out at its competitors. General Mills CEO Jeff Harmening told investors in March that cereal's performance "wasn't great," while Post Holdings, which owns brands like Fruity Pebbles, recently closed two cereal plants amid headwinds in the category. Many cereal giants are beginning to lean into consumer demand for healthier foods, noting that shoppers are willing to pay more for offerings they perceive to have more nutritional value. Upstarts like Magic Spoon, which offers a high-protein and no-sugar cereal, have taken away market share from traditional stalwarts. PepsiCo's Life brand debuted a multigrain cereal, Mighty Life, this year aimed at boosting immunity. 'It's a real dichotomy. You see some of the more premium organic natural [cereal] marketed as healthier for you …. doing well in the category while the overall category is not performing well,' Jeff Zadoks, chief operating officer of Post Holdings, told investors this month. 'There's a pocket of consumers that are spending for what they perceive as better for them, and are willing to pay essentially whatever necessary to get that type of product.' To reach that pocket of consumers, big companies are moving to relaunch big-name brands with added protein options or lower sugar. Kellogg debuted Special K Protein, while General Mills introduced Cheerios Protein. 'As we're seeing a shift in the category, we need to shift with it,' Kellogg CEO Gary Pilnick said on an earnings call in early May. Companies are also pouring more into marketing or redesigns to remake cereal's image as sugary or unhealthy. WK Kellogg faced protests to remove artificial dyes from its cereals, and manufacturers now face pressure from Health and Human Services Secretary Robert F. Kennedy Jr. to phase out synthetic colors as part of his 'Make America Healthy Again' initiative. 'We do believe the entire cereal category should be perceived better from a health perspective,' Pilnick said. WK Kellogg intends to focus more on health and wellness brands, including Special K and Kashi, which is being relaunched. Pilnick said consumer interest in health and nutrition is 'more than a fad,' and the company is accelerating plans to lean into those better-for-you attributes. 'While there are smaller brands in the market that are winning, we could do that, too,' Pilnick told investors. Recommended Reading Post Holdings sees cereal demand dip as Gen Z seeks healthier breakfasts
Miami Herald
08-04-2025
- Lifestyle
- Miami Herald
Pepsi bets big on making your morning healthier
Many big brands that fill the shelves of your local grocery store have faced a challenge in recent years: figuring out how to offer a healthier product to consumers who are becoming savvier by the day about the ingredients they consume. While the '80s and '90s were ruled by sugary cereals with colorful cartoon characters, today's consumers often aren't okay with that option for themselves or their children. They're looking for a product that tastes good but also is better for their health. Don't miss the move: Subscribe to TheStreet's free daily newsletter You can see evidence of this shift in the cereal aisle, which still has those '80s classics for diehards and Gen Xers in need of a dose of nostalgia. But you'll also see a lot of familiar brands pushing "all-natural" ingredients or using other buzzwords, such as Cheerios' "Cheerios Protein" options. Now PepsiCo's Life brand is adding a new take on a classic cereal to the mix, and it's all about optimizing breakfast for the health-conscious. Quaker's Mighty Life, a new multigrain cereal, is clearly aimed at capturing the interest of the health-conscious consumer by reinventing a classic name everyone knows. It comes in two flavors, Very Vanilla and Strawberry Blueberry Bliss, with the former stating "supports healthy bones" while the latter promises "immunity support." The new cereals retail for $2.99 a box or $4.97 for a family-size option. They can be purchased at Walmart and most major grocery store chains. Related: Popular breakfast cereal brand discontinued Life cereal has been around since the '60s and was advertised as a high-protein choice back then, meaning this shift is actually a return to the brand's origins. There's also a reason PepsiCo is trying this particular move with the Quaker brand. Its operating profit increased by 323% in Q4, in part due to lower advertising and marketing expenses. It's a good area in which the company can try to push for growth. The cereal category has taken a major nosedive in recent years, with Nielsen reporting in 2024 that unit sales in the cereal category declined 4.2% in the previous 12-month period. Companies like Post are seeing a 2.3% decline in their cereal holdings, according to their most recent earnings report. Simply put, a lot of people have been learning that healthy breakfasts mean a dose of high protein, ideally alongside fruits and vegetables. This has led many to opt for healthier options packed with protein, such as Greek yogurt, cottage cheese, and overnight oats. One noteworthy development is that smaller cereal makers aimed squarely at making healthier versions of cereal, such as Magic Spoon, have captured the eye of many who will tolerate an upcharge on a more nutritious version of the breakfast classic. Getting placement in high-profile stores like Target also likely helped. Related: Popular cereal manufacturer delivers harsh news amid struggles Also, not being bound to big production contracts like the big companies are, these smaller brands can experiment and try new things more often. It also sometimes gives them a leg up on their competition. Many of the bigger cereal makers are looking at the moves made by these smaller companies and taking notes from their playbooks. The global breakfast cereal market size was valued at USD 47.14 billion in 2024 and is projected to grow from USD 49.07 billion in 2025 to USD 72.19 billion by 2033, according to Straits Research. Related: Pepsi quietly discontinued a fan-favorite soda flavor The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
20-03-2025
- Business
- Yahoo
General Mills Inc (GIS) Q3 2025 Earnings Call Highlights: Strategic Innovations and Market ...
Release Date: March 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. General Mills Inc (NYSE:GIS) is focusing on accelerating organic growth with a sharp focus on value and innovation. The company plans to reinvest savings from HMM and an additional $100 million in cost savings to drive growth. General Mills Inc (NYSE:GIS) is stepping up its marketing efforts, particularly for major brands like Blue Buffalo, Pillsbury, and Cereal. The company is optimistic about its innovation pipeline, with plans for fewer but bigger product launches in fiscal '26. General Mills Inc (NYSE:GIS) has completed a comprehensive evaluation of its brand portfolio to ensure competitiveness across categories. Consumer confidence remains low, impacting the demand for value-oriented products. The company faces headwinds from Yoplait dilution and tariffs, which could affect profitability. General Mills Inc (NYSE:GIS) is experiencing challenges in the snacks category, with a need to address value and innovation. The company is dealing with inventory headwinds in its pet segment, particularly in dry pet food. There is a need for improved marketing and innovation support to regain competitiveness in certain categories like fruit snacks and bars. Warning! GuruFocus has detected 4 Warning Signs with CAAP. Q: With the planned investment increase for fiscal 4Q, how should we think about the incremental investment needed for fiscal '26, especially regarding price points, innovation, in-store activity, and media expense? A: Jeffrey Harmening, CEO, explained that the consumer environment hasn't improved as expected, with consumers still seeking value. The company plans to reinvest in pricing, particularly in fruit snacks, and increase marketing spend on major brands like Blue Buffalo and Pillsbury. The focus will be on getting value right, improving marketing, and launching new products in fiscal '26. Q: Can you outline the tailwinds and headwinds for next year, and how do you plan to address them? A: Kofi Bruce, CFO, acknowledged the tailwinds such as better marketing, innovation, and cost efficiencies. Headwinds include trade investments, tariffs, and Yoplait dilution. The company is committed to improving growth trends and competitiveness, with flexibility for additional investments as needed. Q: How does General Mills plan to ramp up innovation in fiscal '26 compared to '25? A: Jeffrey Harmening, CEO, noted that while innovation is still below pre-pandemic levels, it has increased significantly this year. The focus for fiscal '26 will be on fewer but bigger innovations, with robust support for successful new products like Cheerios Protein and Nature Valley Granola Protein. Q: How does General Mills determine the right price adjustments for categories like Dough and Totino's, and how does this apply to fiscal '26 plans? A: Jeffrey Harmening, CEO, emphasized the importance of getting pricing in the right zone without necessarily matching competitors. The company uses a category-by-category approach to assess value, marketing, and innovation needs, ensuring agility to adapt to changing contexts. Q: What is driving the current weakness in the snacks category, and how does General Mills plan to address it? A: Jeffrey Harmening, CEO, attributed the weakness to consumer confidence and value-seeking behavior, rather than factors like GLP-1 drugs. The company plans to focus on value, innovation, and marketing to address category challenges, with a particular emphasis on fruit snacks and snack bars. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
