On-the-go cereal

Nestlé and General Mills’ joint venture launches on-the-go cereal in UK

By Douglas Yu contact

- Last updated on GMT

Pic: CPW
Pic: CPW
Cereal Partners Worldwide (CPW) has launched its first line of Breakfast To Go in the UK.

The new cereal packs comprise a 45g pot of cereal, a 189ml carton of semi-skimmed milk and a spoon and come in two varieties: Shreddies and Shredded Wheat Honey and Nut. They are currently available at Co-op Food and Nisa across the UK at a SRP of £1.99 ($2.61).

White space in on-the-go cereal

CPW said Breakfast To Go was designed to meet the rising trend towards out-of-home breakfasts in the UK.

“With life getting busier and busier, time-poor Brits are racing to get out the door during the morning rush,”​ said Gharry Eccles, vice president of Nestlé Cereals UK and Australia.

Nestlé-conducted research that surveyed 2,095 British adults in October last year found that more than 15% of them eat breakfast at work or on the go. Almost a quarter (24%) of them are between 25 and 34 years of age, while one fifth (21%) are aged between 35 and 44.

Kantar also noted there is a white space for the to-go cereal market in the UK.

“While cereal is one of the most popular choices for in-home breakfasts, eaten at one in two occasions, due to limited choices, it is only eaten in one in 20 occasions out of home,”​ said the market research firm.

It added Britis people spent £5bn ($6.56bn) on out-of-home breakfasts in 2017, with the average person eating breakfast on the go at least once a week spending about £2.30 ($3.02) each time.

CPW said it will expand its production of cereals made with whole grains.

Sales of RTE cereals expected to decline

Mintel analyst, Alice Baker, said the declining sales of the ready-to-eat (RTE) cereals segment in the UK affected the entire cereal market between 2012 and 2017.

“Estimated at £1.5bn ($1.97bn) in 2016, values sales of breakfast cereals fell by 9.7% over 2012-16. This was mainly owing to the ongoing decline in volume sales of RTE cereals, the dominant part of the market,”​ she said.

Baker further predicted sales of RTE cereals will continue to decline to 2022, as inflation will push up prices.

“Value sales for breakfast cereals are predicted to grow by 4.2% to reach £1.6bn ($2.1bn) and volume sales to fall by 5.2% to 398 million kg by 2022,”​ said Baker.

CPW is the long-term joint venture between Nestlé and General Mills established in 1990.

It uses the manufacturing capabilities of both companies to produce more than 50 cereal brands, including Cheerios and Nesquik.

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