Real breakthroughs in the ready-to-eat and hot cereal markets were few and modest in 2002. That may account in part for the 0.6% drop in unit sales for the year and modest 0.8% increase in sales volume. Information Resources Inc. (IRI), Chicago, tallied category sales at $6.8 billion. Health and fitness, marked by more multi-grain, organic ingredients, and massive amounts of vitamins and minerals in fortification efforts, characterized the adult cereal category. Kids were served mostly in expansions of established cereal brands and no-brainer licensed character cereals.
But manufacturers are looking more to healthful grains to gain a market edge and unique flavor profile with their cereals. Kellogg, Battle Creek, Mich., continued to roll out new health-oriented Kashi-brand products. Kashi Apple Pie Pillows Breakfast cereal is a seven-grain cereal. Its formulation includes whole barley, triticale and sesame. Also introduced was Kashi Good Friends Cinna-Raisin Crunch Cereal.