Thursday 25 October 2012

How did it all begin?


The First Breakfast Cereal appeared in 1863 thanks to Dr. James Caleb in New York who invented Granula a healthier morning option than pork, but it wasn't particularly tasty or easy to eat at that time. The world's first breakfast cereal was comprised of dense bran nuggets that had to be soaked overnight in order to be chewable.

The Kellogg Brothers’ revolution
Dr. John Harvey Kellogg, a doctor who belonged to a vegetarian group, developed wheat and corn flakes to extend the group's dietary choices. His brother, Will Kellogg, saw potential in these new grain products and initiated commercial production and marketing. Patients at a Battle Creek, Michigan, sanitarium were among Kellogg's first customers.

In the nineteenth century, the Quaker Oats Company was also one of the precursors on the breakfast cereal industry. The Washburn Crosby Company, a predecessor to General Mills, entered the market during the 1920s. The company's first ready-to-eat cereal, Wheaties, was introduced to the American public in 1924. According to General Mills, Wheaties was developed when a Minneapolis clinician spilled a mixture of gruel that he was making for his patients on a hot stove. General Mills launched the world's first ready-to-eat oat cereal in 1941. Originally named Cheerioats, the product later became "Cheerios."

The second half of the twentieth century brought rapid increases in brand offerings and growing national interest in ready-to-eat cereals. In 1950’s many pre-sweetened cereals were introduced to children (Trix and Lucky Charms in 1954; Cocoa Puffs in 1958). Adult cereals made an impact during the 1960s. In 1970, the ready-to-eat cereal market was valued at $659 million, and it had reached $1.9 billion by 1979.

In the early 1990s, consumers became increasingly interested in health issues and, consequently, in improving their diets. In response, Kellogg offered products aimed at the health-conscious market (Nutri Grain with no sugar or preservatives; Crispix in 1983. Just Right in 1985 and Smart Start in 1998). 


In 1985, Kellogg held a 40 percent share of the total ready-to-eat cereal market. By 1992, industry analysts valued the RTE cereal market at $7.3 billion. 

In 2009, General Mills and Kellogg held most of the market share. In 2009, Quaker was the top performer in the hot cereal category. Cereal manufacturers saw their bottom lines increase during this time as record commodity prices were passed onto store shelves.


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