Focus On - Breakfast Cereals

Page 4 www.planforprofit.co.uk @PlanforProfitRetail @Plan_for_Profit Page 4 www.planforprofit.co.uk @PlanforProfitRetail @Plan_for_Profit Even with inflation at its lowest since February 2022, 23% of shoppers still say they’re 'struggling'. Additionally, in March 2024, spending on promotions increased by £605 million compared to March 2023. 3 Cereal remains a significant category for the channel, generating nearly £55 million in annual sales and selling over 8 million kilograms per year. 4 However, we observed a year-on-year decline, with value down by -0.6% and volume by -10.5%. As the total market experiences category growth, the goal should be to move the shopper mission from distress purchase to planned purchase. If Symbols and Indies matched the total market growth, it would contribute an additional +£2.0 million to the channel. 4 Seasonality exists within cereal, with peak sales occurring during the summer holidays and reaching their highest point when children go back to school. 5 In 2023, sales for the 12 weeks leading up to September 9th were up by +8.6% compared to the rest of the year. 5 This is an important period for the category, during which retailers should increase activity and visibility of cereal brands. If space allows, pairing cereal with essentials like bread, crisps, sandwich fillings, and yogurt can enhance sales and help parents feed their children during the summer while preparing for the new school year. While growth is observed across the Total Market, Symbols and Indies experiences growth in only three areas. The biggest is portable, highlighting the need for on-the-go solutions. Growth drivers include Quaver Porridge Pots, Kellogg’s Pop Tarts, and Ambrosia Pots. 4 We observe growth in Family Flavoured options, with some of the largest brands in the category experiencing growth, including Coco Pops, Krave, and Weetos. Taste remains the primary driver of choice and resonates well with Symbol and Independent shoppers. Introducing new products and flavours can further stimulate incremental purchases in this area. 4 Retailers should focus on Cereals during Summer Taste and Convenience is driving shopper's choice whilst healthier options decline 4 Circana | Total Cereal | Value & Volume Sales | 52we 23 Mar 24 5 Circana | Total Cereal | Value & Volume Sales | 5yr 4we 23 Mar 24 Cereals is a key category for Symbols and Independents with a £2m growth opportunity Category Insight and Shopper Behaviour