- Kellogg cereals will begin appearing alongside fresh fruits and vegetables in the produce section of Meijer supermarkets.
- The company is hoping to see a sales boost for its cereal products by leveraging the "halo effect" of being associated with the positive, better-for-you perceptions consumers have of fresh produce.
- The move to the produce aisle corresponds with Kellogg's new marketing campaign, which promotes mixing cereal with fresh fruit and other unique ingredients.
The cereal industry is in flux as manufacturers combat sales declines with a wide range of innovations meant to lure consumers back to cereal. Aside from reformulating products, such as removing artificial colors and flavors from its cereals, Kellogg believes it can benefit from the better-for-you vibe of products placed along the perimeter of grocery stores.
Consumers seem to be gravitating toward the refrigerated sections along the perimeter of stores, where they believe products are fresher and healthier. Dried seasonings giant McCormick understood this trend when it agreed to acquire the Garden Gourmet chilled packaged fresh herbs, sold in the produce section.
However, moving sugary cereals like Frosted Mini-Wheats to the produce section could also generate backlash from health-conscious consumers who don't expect to find these types of packaged products there.
If the strategy works for Kellogg, more manufacturers may race to compete for more shelf space in the produce section. That could eventually disrupt the better-for-you appeal the perimeter of the store originally had, and the plan could backfire for all manufacturers that migrate packaged food brands there.