Nestlé and General Mills’ joint venture launches organic cereals in Europe

By Douglas Yu

- Last updated on GMT

Pic: Nestlé
Pic: Nestlé
Cereal Partners Worldwide (CPW) has launched a range of organic versions of Nestlé’s breakfast cereals, including Chocapic, Nesquik and Cheerios, in France, Spain and Portugal with expectations of expanding into other markets next year.

The joint venture, created in collaboration between Nestlé and General Mills in 1990, said the new line was developed to answer the growing demand of consumers for organic products.

According to CPW’s CEO David Clark, the company has seen consumer preference grow over the past few years.

Organic cereal growth

Western Europe is a key market for organic breakfast cereal makers. Even though the total dollar value is much smaller, year-on-year growth is outstripping North America, according to Euromonitor.

The market researcher’s data showed the retail value of organic breakfast cereals in Western Europe registered $323m in 2017, growing 10.4% year-over-year.

The North American market, on the other hand, posted $687.6m for the same period, but growing at 1.2%. The US alone registered $586.5m, growing 0.5%.

However, Clark noted organic cereal options for the entire family remain limited.

“We are excited that the launch of the organic Nestlé breakfast cereal range addresses the need for tasty and fun options, providing patents with a high quality, nutritious choice that the family will love to eat,” ​he said.

Unchanged ingredients

CPW noted, even though its new cereal variants are certified organic, they do still contain whole grain as their primary ingredient and are free from artificial colors and preservatives, as are their conventional versions.

‘CPW is continuously improving its product offering without compromising on quality or taste – whether that’s developing new organic products, increasing levels of whole grain or reducing sugar and salt levels,’​ said the company in a statement.

CPW recently posted a 2% net sales decrease​, reaching $18m, due to its sales declines in Latin America, yet partially offset by strong performance in Asia, Middle East and Africa.

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