Kellogg Looks Beyond Kids in New Cereal Strategy

by Nate Wooley | May 6, 2013 9:45 am

Kellogg (NYSE:K)[1]Cereal maker Kellogg (NYSE:K[2]) is trying to expand the appeal of its cereals beyond the young.

Kellogg — along with rival General Mills (NYSE:GIS[3]) — is developing breakfast cereals with more nutrients and less sugar, Brandchannel reports[4].

The companies are adopting the new strategy in response to changing diet patterns among the better off. Consumers who have higher incomes are placing a premium on more healthy eating and are open to the idea of having a more nutritious breakfast cereal.

Kellogg CEO John Bryant recently told analysts that the company wasn’t losing the lower-end and young consumers, but that those with more money were eating less of his company’s products.

“I don’t think they’re really that price-sensitive. The real issue there is innovation,” Bryant said.

Kellogg is hoping to maintain the success seen when the company extended the brand reach of its “Special K” cereal with breakfast bars and other new products. In addition, the company is adding nutrients such as omega-3 fatty acids to its cereals to appeal to the older demographic.

General Mills also is on the bandwagon. The company’s short-term goal is to reduce the sodium in its top 10 product groups — including snacks and soups — by 20% by 2015.

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