Category advice

Cereals icon
Cereals

Market Insight

The cereal market is worth £1.6bn and growing £12m YOY

(Nielsen/Kantar May 2018)

Breakfast is the Number 1 meal occasion in the UK, accounting for 28% of meals

(Kantar World Panel December 2017)

Health plays an important factor in shoppers choices when it comes to breakfast, with over 327m occasions of people looking for health benefits like fibre/vitamins from their breakfast

(IRI Independents June 2018)

Young families account for 25% of Total Cereal spend whilst the retired population makes up 26%.

Target your ranges accordingly

(Kantar, 17/06)

Free From Ready To Eat is growing at 4.7% YOY, with almost 1 in 5 households avoiding gluten.

Offer an option to shoppers, who might otherwise not purchase

(Kantar 2016)

The Porridge Segment has consistently grown over the last year and is the categories best performing segment.

Porridge has its largest Value Share in the Multiples however it is performing best in Convenience 52we YOY due to the 'replenishment' nature of customers

(+8.1%) (IRI, 16/06) (Kantar, 17/06)

Cereal is in a huge 96% of homes, that's more than either tea or coffee!
3/4 of everyone in the UK eats cereal at least once a week for breakfast

Family eating breakfast cereal

Breakfast is the fastest growing meal occasion in the UK, with more people than last year choosing to have breakfast as part of their day.

Breakfast is a great value occasion for consumers, the average breakfast costs just 56p, with cereal even better value!

Cereal is by far the most popular item at breakfast, it features in 61% of breakfasts – that's more than twice as many as toast.

The strongest growth in independents is in the Portable segment and in the Family Flavoured segments, with brands such as Coco Pops and Krave seeing strong growth.

(IRI Independents 12 w/e 16 June 18)

Categories should be merchandised according to type. For example, retailers should place all of the family products together, porridges together, healthier products together, and so on.

A product's store-location is key. Shoppers like finding the right product easily, therefore placing cereal near other morning categories such as bread and milk will help your shoppers find it.

Visibility of top RSV brands in each segment – Place your Everyday Family Brands in the middle of the aisle as they have the highest penetration and interact most with other segments creating a nice flow – Weetabix, Coco Pops, Crunchy Nut, Rice Krispies and Cheerios act as the top preforming brands within this segment.

At the fixture, create 'Segment blocks' where similar types of cereal are grouped together. This helps to achieve easy navigation, and it's a good idea to make sure that the biggest brands are at eye level, so they are easy to find and recognisable.

Maximise Cereal Occasions and Breakfast events – Make the most of events such as 'Back to School' and On Pack Promotions throughout the year, use branded POS and place Cereal in the best promotional space during these trading times to maximize on sales.

Segment Share of Space to Sales – Provide space based on RSV of the Cereal segments and then brand. Everyday Family offers the most Value sales within all Channels, making up 32% of Total Cereal Value sales; this is then followed Family Flavoured (20%), Muesli and Granola (16%), Functional Health (14%), Porridge (13%) and then Portable (5%).

Size of the prize – Ensure best-selling pack sizes are at eye level and have the most facing on fixture to act as a Category Signpost for customers.

Cereals

Must Stock Lines

These are the ‘Must Stock’ lines which shoppers expect to see in a convenience store. By stocking these lines, you will be meeting your customers’ needs and therefore they will visit your store again.

We suggest you stock the following range:

Must stock linesMust stock lines
Must stock lines
Cereals

Planograms

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