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Cereal Sales Down 10% Over the Last Three Years

CNBC laments the decline of cereal for breakfast. (Click here for video.)

Cereal killers at the breakfast table

Thu 22 Aug 13 | 11:56 AM ET

The following transcript has not been checked for accuracy.
cuckoo for cocoa puffs anymore. how are cereal companies handling a decline? the good news, fewer people are skipping breakfast. the bad news, more of skipping cereal. where is mikey when you need it. he will try it. he eats everything. he likes it sm. in the game of life cereal, tastes change. consumers are swimming to yogurt or foods you can eat on the go. so-called cold cereal unit sales have cold 10% in the last three years. they'reinnovating, coming up with protein shakes, breakfast bars, however cereal remains the number one choice for breakfast in america. but not all consumer choose a bowl of cereal and milk. it's also impacting milk sales. also declining as people switch to other beverages. dean food says it's going to be a tough quarter. there's another problem translating this overseas. cold cereal is really only popular in the u.s., and so they've adjusted their cereal offerings internationally to appeal to that consumer that maybe wants to dunk a cereal bar in coffee or in yogurt. but look at the stocks. not that soggy until this summer. general mills and post have been outperforming the s&p and credit suisse says valuations in the sector getting a little high. also then to solve what may be a serial cereal problem, markets are targeting adults, not kids. gluten freechex. more adults eating lucky charms. at strike force hit says he has cher cheerios with soy milk because i'm that age. a box of cereal can cost $7 in some markets. it's ridiculous. i know we have to leave it there. and there's less in here. exactly.

I hope this means that people are finding out that carton of eggs or a slab of bacon is better for their health and wallet than a $7 box of cereal. A coworker remarked that one of her grandsons can eat a whole box of cereal at one sitting, and wondered if cereal companies will try to make something healthier. But what healthy food are they going to make out of flour and sugar?


daveizmir said…
not to be egotistical, however when everyone and their brother were doing lo carb in 04 and meat prices went way up.
Lori Miller said…
The price of meat and eggs will probably go up again if there's more demand for them. But for many people, poor diet has its costs, too: medications, more sick days, bigger and bigger clothes, and less energy. There's a cost to the environment from cereal monocrops and people eating more food than they might on LC. But raising animals for food, when it's done right, is good for the environment.

I actually save money by doing LC:
daveizmir said…
I cannot believe how much better I feel after replacing corn fed steaks with local Island grass fed hamburger meat. I always figured the tradeoff was minor. Also no bloating like after eating corn fed burger
The humble egg will do you far more good at breakfast than a bowl of cereal. I do think more people are beginning to realise this. A low carb, high fat lifestyle does not have to be expensive, if you shop wisely.

All the best Jan
Lori Miller said…
Interesting. I wonder if this is a reason that some people feel better when they cut back on red meat. From an evolutionary standpoint, we should be very well adapted to it--but aurochs and cave bears weren't eating much grain.
Lori Miller said…
Seven dollars for a box of cereal blows me away. If you don't insist on pasture-raised, you can get a couple of cartons of eggs for that.

Did you ever hear Bill Cosby's bit about chocolate cake for breakfast? Ain't much difference between that and a bowl of cereal.

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