Magazine article Marketing

Cereal: Crunchy Nut Losing Its Bite

Magazine article Marketing

Cereal: Crunchy Nut Losing Its Bite

Article excerpt

Sales of the cereal are in decline as more people opt for breakfast-on-the-go.

Long working hours have forced many consumers to turn to the 'deskfast' - breakfast eaten in the office.

Meanwhile, several reports released in the past year have highlighted the high sugar and salt content of many popular cereals. These are the two main factors blamed for the decline in sales of breakfast cereals.

Kellogg is one of the hardest-hit companies, according to figures based on a survey from The Grocer magazine, revealed last month. Sales of the Crunchy Nut brand are down 10.3% (a pounds 9.4m drop) to pounds 81.3m, for the year to October 2012.

The brand has also slipped down in the top 20 rankings (by volume sales) of breakfast cereals in the survey, having been overtaken by Quaker, which is now at number three, behind Weetabix and Special K.

Profits at Kellogg's European business fell by 20% in the first quarter of 2012. At the time, the cereal maker said most of the issues in the UK related to its Crunchy Nut and Special K brands.

Two years ago, Kellogg unveiled a pounds 13m, celebrity-fronted campaign for the cereal, featuring Rob Brydon, with ads created by Leo Burnett.

In 2012, the brand revisited its traditional endline 'The trouble is, they taste too good,' with the first ad in the campaign featuring a snake. Kellogg also invested in new product development, including the launch of a Crunchy Nut variant with cranberries, almonds and yoghurt flakes, with ads inspired by the film Jurassic Park.

How can the brand reverse its sales slump? We asked Matt Edwards, chief executive at WCRS, which has previously handled the Weetabix account, and Simon White, European chief planning officer at Draftfcb.

He previously worked at Unilever and Pedigree Petfoods, and was joint managing director and head of planning at Grey London, which has worked on the Jordans & Ryvita Company business.

CRUNCHY NUT STATS

Sales were down 10.3% to pounds 83.1m for the year to Oct 2012

Pounds 6m - The cost of the brand's latest campaign

Source: The Grocer, Kellogg

DIAGNOSIS

Two industry experts on how Crunchy Nut can compete with healthier breakfast foods

MATT EDWARDS, CHIEF EXECUTIVE, WCRS (which handled the Weetabix account)

I love Kellogg's Crunchy Nut; it's delicious. …

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