Kellogg extends New York cereal café menu as it aims to tap foodie culture
The bowls of cereal can be ordered with the customer’s choice of a milk base, including whole, skim, soy; almond or Greek yogurt; or soft-serve ice cream. Regular bowls are priced $7.50, with small bowls sold for $6.50.
New business model: cereal café
Kellogg’s NYC site, the company’s first brick-and-mortar café, launched in Times Square about a month ago, and opens daily from 7 am to 11 pm with approximately 20 seats for patrons.
Kellogg described the enterprise is a new approach to marketing.
“The idea for the café began in the summer of 2014 with the Kellogg’s Recharge Bar pop-up,” Kellogg’s associate director of morning foods marketing, Andy Shripka, told BakeryandSnacks.
“The bar gave guests a chance to experience bold new flavor profiles in cereal, but the experience was short lived. That’s when the question came: ‘What if the pop-up could be permanent and people could try fun, exciting cereal-based menus all the time'?”
“In order to remain on top, cereal companies, such as Kellogg, need to adapt to today’s foodie culture,” he added.
Frosted Mini-Wheats Pumpkin Spice
Frosted Mini-Wheats Pumpkin Spice cereal began rolling out to grocery retailers across the US last month with a suggested retail price of $2.50 for a 15.5-ounce package.
The company described the new cereal as “a combination of crunchy wheat with just right amount of sweet frosting, cinnamon, nutmeg, allspice and ginger".
Kellogg reported its net sales during Q2 this year declined by 6.6% compared to the prior-year period, with sales from the morning goods division - which includes cereals - down 2%.
Lux Research analyst Joice Pranata previously told this site that she expects cereal manufactures to diversify into other breakfast foods, such as yogurt and snack bars, as the US cereal market declines.
Even though cold cereal still remains the number one choice for breakfast in the US, Euromonitor predicts retail volume sales to fall by 4% over the period from 2015 to 2020.
