Dive Brief:
- Kellogg is converting its cereal brands into snack packs with bigger size bites in a new line of products called Jumbo Snax, according to a release.
- Jumbo Snax come in four varieties: Froot Loops, Apple Jacks, Corn Pops and Frosted Flakes-inspired Tiger Paws. Tiger Paws features a similar flavor to Frosted Flakes but comes in paw-shaped cereal bites, inspired by its Tony the Tiger mascot.
- All four varieties are available in either a 12-pouch multipack with 0.45-ounce single-serve bags or a 6-ounce resealable bag, the company said. The new brand is currently available online and in the cereal aisle at stores.
Dive Insight:
Recent years have not been easy for the cereal segment. Although cereal manufacturers remain optimistic about the future, sales decreased 17% from 2009 to 2016. As a result, top cereal makers have diversified their offerings. Post Holdings, General Mills and Kellogg launched indulgent cereal brands over the last year, and now Kellogg seems to be shifting its cereal innovation efforts to a growing and profitable category: snacks.
Erin Storm, marketing director of Kellogg All Family Cereal, said in a statement that "morning isn't the only time for cereal," citing a stat from a 2019 study that showed that 30% of cereal is already eaten outside of breakfast. But Kellogg isn't the only company transforming its traditional cereal into a more portable snack. General Mills has its Milk n' Cereal bars of its signature brands and other cereal snacks.
As busy consumers look for easy and quick ways to eat, snacks are taking center stage. Snacking has surged in the U.S. as an all-day practice in recent years, sometimes even replacing meals, a recent Innova Market Insights report found. And it is not just children that will be the target of this launch. Snacking is preferred to eating meals for 59% of adults worldwide and 70% of millennials, according to a study Mondelez conducted last year.
This launch comes at a time when consumers are clamoring for products. Pantry loading during the pandemic has helped boost sales for companies like Kellogg. Kellogg reported in its most recent earnings that its organic sales for the first quarter jumped 8% from this time last year, including improvements in its struggling cereal business.
Although the company delayed the launch of its plant-based meat brand Incogmeato because of the pandemic, it is not waiting to launch this line of jumbo sized cereal bites. If the company can capitalize on the momentum from the snack category and the pandemic stockpiling, then more cereal companies may look to make similar moves in the future.