10 May 2016 US: Kellogg morphs Raisin Bran into muesli
Raisin Bran, the breakfast cereal brand that was first introduced to Americans in the 1940s, is taking on a new form. It is going granola (as the US market defines muesli).
Kellogg is updating the classic brand into a category that more adults are expressing interest in. It is debuting two flavours of the Raisin Bran Granola nationally: Raisins and Honey Granola and Cranberry Almond Granola. They will retail for $3.99.
The granola line is essentially meant to please all types of consumers: Kellogg is planning to market it as a snack or as part of any breakfast meal.
“The granola category is a first-ever innovation for Raisin Bran,” said Jeremy Harper, the senior marketing director for Kellogg’s morning foods. “Raisin Bran continues to be a breakfast favourite among adults and from our research, granola has also topped that list. We wanted to merge the two to create a breakfast dream team.”
Kellogg’s Raisin Bran Granola adds to an existing line of four cereals that are already stocked nationally.
Why take Raisin Bran into a new pocket of food?
Well, cereal sales have gone cold for a while now, as consumer preferences change for breakfast, buying more breakfast sandwiches, yoghurt and you guessed it – granola.
To navigate that trend, Kellogg and other cereal makers have had to get crafty. Most notably, they’ve introduced packaging to encourage cereal as a “snack” that’s perfect on-the-go.
Kellogg earlier this year said it believes cereal sales will rise in 2016, after facing years of declines. Raisin Bran is still a top performer in the category, but it does make sense to expand into the granola space.
Research firm The NPD Group says there’s been a steady increase in consumption for granola bars, a sibling category to what Kellogg is launching.
Americans ate 9-billion granola bars last year, up from 8.2-billion in 2013. Euromonitor doesn’t track granola bags but it does track muesli, which is very similar. Sales of muesli in the US have increased to $480.9-million in 2015 from $386.1-million five years earlier.
Why? Experts say granola has been a stronger performing category because consumers view it as healthier than cereal. That explains why Kellogg would want the Raisin Bran brand to participate in both categories.
Source: Fortune