No Way To Sugar-Coat It: Breakfast Cereal Sales Are Hurting

Sales of breakfast cereals continue to tumble. Overall, between 2009 and 2010, cereal sales dropped a “nauseating” – AdWeek’s term – 6.3 percent, according to Mintel. Kellogg reported recently that sales of its cereal products fell 4.9 percent, contributing to a 15 percent slide in profit. AdWeek cites several market factors at work in these disturbing numbers. The number one reason is the perception that cereals are too loaded with sugar, contributing to the childhood obesity epidemic. Other factors: concerns about gluten sensitivity, increasing competition from highly portable snack bars and yogurt, and the fact that more and more people just skip breakfast altogether.