Optimum ReBound Cereal

Nature’s Path helps morning exercisers refuel their muscles with Optimum ReBound cereal.

By Hollis Ashman and Jacqueline Beckley, Consumer Understanding Editors

Share Print Related RSS
Page 1 of 2 « Prev 1 | 2 View on one page

Organic foods and grocery retailing in general are undergoing major changes now that Wal-Mart has started selling organic foods. The prices may be 10 percent higher than Wal-Mart’s “everyday low prices,” but they will be much lower than typical organic food pricing, which can be 50 percent to 100 percent higher than the non-organic versions of the same foods. Once Wal-Mart enacts a strategy, it can change the landscape for many companies due to its sheer size in the marketplace.

Consumers are purchasing organic foods for such perceived benefits as better nutritional value, freshness, healthfulness, taste and a vague connection with family farming. Produce is the most popular organic product, purchased by 37 percent of shoppers, followed by cereals, breads and pastas at 25 percent. Consumers looking for organic are most likely to make their purchases at a supermarket (48 percent) followed by an organic/natural foods store (18 percent).

In scanning the wide variety of organic products available for sale today, we found Nature’s Path has been producing organic healthful cereals that deliver a number of claimed benefits to the consumer. It took an interesting step last year when it introduced Optimum ReBound. The cereal is clearly targeted at morning exercisers, with its 10g of protein per serving claimed to be capable of repairing and refueling muscles fresh from their daily workout.

Understanding the marketplace

Many consumers are looking for their food to naturally deliver health benefits instead of having those benefits engineered in. But many of us get confused by what organic means. Organic is a subgroup of natural foods. To claim organic today, a food has to meet specific standards set by the government. “USDA Organic” must have no synthetic fertilizers, few chemical pesticides, no antibiotics or hormones, no irradiation or genetic engineering, no animal byproducts in animal feed, and access to the outdoors for all livestock. For a breakfast cereal, this means the cereal is more than just healthy grains; its grains contain neither genetically modified organisms nor pesticides.

The cold breakfast cereal market was estimated at $6.84 billion in 2002 (ironically, not including Wal-Mart sales, according to how Information Resources collects data). Unit sales were down 2.2 percent. Kellogg, General Mills, Post, and Quaker have approx 84 percent of the market.

Kellogg, at a 31 percent share of the market, says 15-20 percent of its sales come from new products (according to IRI). New growth areas for cereal are expected to be in health, women’s needs, organic/natural and licensed products.

The natural food retail segment accounts for less than 5 percent of the total grocery market. The organic/natural market was about $2.2 billion in 2004, according to ACNielsen. Key venues for natural and organic are Whole Foods and Wild Oats supermarkets, but these make up only 15 percent of the natural/organic food market.

Nature’s Path helps morning exercisers refuel their muscles with Optimum ReBound cereal.
Nature’s Path helps morning exercisers refuel their muscles with Optimum ReBound cereal.

Nature’s Path appears to be rediscovering areas of cereal that have been forgotten. One of those is protein. Every so often, protein-rich foods appear to become hyperfashionable. Either before or after a swing toward muscle-based protein (the last Atkins craze is an example), there is a movement toward non-muscle protein. Life Cereal and Special K are examples of familiar cereals developed years ago as grain based alternatives to muscle protein.

So Nature’s Path Optimum ReBound, with 10g of protein per serving, needs to be clever to deliver a new message about cereal protein. Nature’s Path has directed the consumer to consider repairing and refueling muscles from their daily exercise using a whole food cereal instead of supplements, powders or beverages.

Ninety percent of people who exercise consistently do so in the morning. So creating a breakfast cereal to refuel and repair muscles after exercise makes sense. Providing all this and organic too appears to be on trend and ahead of the product development curve.

Insights

Breakfast is the one meal that consumers agree is about health, we’ve learned from Our It!s Convenient, Crave It! and Healthy You! studies. The key attributes consumers identify for a convenient breakfast cereal are taste, good for me and price. The key attributes for a healthy breakfast cereal are taste, price, vitamins and minerals, preferences of other family members and healthiness.

Looking across these aggregated responses indicates taste is critical. Healthiness and price are second. Freshness is usually judged through flavor and textural differences.

Organic foods mix this hierarchy up a bit where healthiness of the food is ordered first and the taste is typically second. But this is for health-oriented consumers. Mainstream consumers appear to always put good taste first.

Nature’s Path is blending the health concerns of new age consumers with the needs of mainstream ones for a good tasting breakfast cereal that can actually deliver on multiple promises. Some of the key benefits promised on the Nature’s Path box are easily quantifiable: high fiber, low sodium, high protein, whole grain and omega-3 fats. Others, such as “muscle recovery,” take some faith.

With convenience as a given, the key trends in breakfast cereals are value, taste and healthiness.

Value: Private label or store labels have improved their quality and sensory attributes. This drives name brands to higher levels of creativity and delivery of benefits to justify the price difference.

Page 1 of 2 « Prev 1 | 2 View on one page
Share Print Reprints Permissions

What are your comments?

Join the discussion today. Login Here.

Comments

No one has commented on this page yet.

RSS feed for comments on this page | RSS feed for all comments