Breakfast metamorphosis

Until recent decades, breakfast foods eaten at home on work-week mornings by millions of Americans consisted primarily of cold or hot cereal, toast or bakery goods, plus a choice of beverage. Items requiring lengthier preparation — bacon, sausage, pancakes, waffles, potatoes, French toast and egg dishes — were enjoyed almost exclusively on weekends until microwaveable versions began entering the marketplace.

Today, traditional breakfast mainstays share an increasingly crowded stage with newer frozen breakfast entrées and sandwiches, plus an expanding range of more healthful, portable and convenient ready-to-eat (RTE) alternatives such as yogurt, breakfast bars and granola.

Changing times

The breakfast landscape is becoming increasingly competitive, notes Jared Koerten, a senior food analyst for market research company Euromonitor International Inc., Chicago. “For decades, everybody ate cold ready-to-eat cereal for breakfast,” he says. “But in recent years, consumers have been seeking more portable, convenient grab-n-go breakfasts such as Greek yogurt, snack bars or new breakfast biscuits.”

Millennial and their younger counterparts aren’t interested in sitting down each morning to a bowl of cereal at home and are driving this movement.

“They’re constantly on the go,” Koerten stresses. “Many high-protein breakfast options can help one feel more satisfied throughout the day, and they have eaten into traditional RTE cereal sales.”

Consumers’ insatiable appetite for protein at breakfast, plus the current attention fast-food all-day breakfast is receiving, are key trends driving the retail breakfast foods category, says Kevin Burkum, senior vice president of the American Egg Board, Park Ridge, Ill.

“Typically, most protein in this country is consumed at dinner, but more Americans are moving towards high-quality protein like eggs for breakfast and away from grain-based, carb-laden breakfast foods,” he adds.

Consumers want breakfast foods they can make and take quickly, says Bracken Abrams, key account manager – retail, for Boise, Idaho-based J.R. Simplot Co., which produces frozen breakfast sandwiches, meals and more for retailers’ own-brand programs. Sales of the company’s handheld breakfast sandwiches and breakfast bowls are growing incredibly well, Abrams says.

“Mom or dad can feel good about microwaving one for their kids in the morning because it provides longer-lasting energy throughout the day,” he adds.

RTE cereal still remains a breakfast powerhouse, however. Driving the breakfast cereal and granola categories are organic and Non-GMO Project Verified products featuring unusual flavors such as coconut and chocolate, as well as healthful ingredients such as quinoa, chia and flax seed.

“Manufacturers add these flavors to make cereals and granolas taste good rather than just offering something appearing to be uber-healthy,” says Robn Cassidy, director of business development for Attune Foods LLC, Phillips Ranch, Calif., a producer of organic and non-GMO granola, cereal and more for retailers’ store brand programs.

Capitalize on trends

Nutrition and portability improvements, plus the promotion of expanded consumption occasions, could boost frozen breakfast food sales, according to “Frozen Breakfast Foods US,” published in July 2015 by global market research firm Mintel.

Meanwhile, many store brand RTE cereals launched in recent years contain more natural ingredients, plus retailers are prospering by offering their own private label organic-certified products.

“Organic is very hot with many consumers,” Koerten says.

Granola and hot cereals also enjoy more of a natural positioning and are doing well, while RTE cereal continues to drive toward a more convenient positioning, he adds.

Although consumers demand core breakfast products, they also enjoy eating something different.

“We showed a waffle chicken sandwich at the 2015 Private Label Manufacturers Association’s Private Label Trade Show that was a huge hit,” Abrams notes.

And consumer interest will build for better-for-you store brand breakfast bowl products, which could include products with lower sodium or kale with egg whites, he predicts.

Although many retailers already offer store brand granola or cereal programs in standard products and flavors consumers know and like, they could branch out by offering high-protein, high-fiber or antioxidant products addressing health concerns, Cassidy says.

“Basic cereal offerings could include [leading brand] emulations; more premium-level offerings featuring different ingredients and health benefits that command a higher price point; and a third tier [that] would be all-organic,” she adds.

Of course, the quality of store brand breakfast offerings must also be high if retailers are to succeed here.

“We’re also challenged to make sure our nutritionals are as good as, or better than, [those of the] leading brands,” Abrams says, “and that can get a little tricky.”

And retailers should go beyond just “me too” items when it comes to store brand breakfast products.

“What endears a consumer to a specific retailer is what he or she can only purchase at that retailer. It gives consumers one more reason to shop exclusively at their store,” Cassidy says.

Consider the package

Opportunity also exists to increase single-serve packaging and handheld formats across the frozen breakfast food segments, Mintel says. Packaging that allows consumers to see a product, meanwhile, is ideal for store brand breakfast bars and other items containing colorful, healthful ingredients, Koerten says.

Pouches also are trending across many grab-and-go product categories.

“Some cereals and granolas are packaged in resealable stand-up pouches. It helps with portion control and on-the-go convenience,” Koerten adds.

Although sustainability is important to consumers, packaging integrity and product protection still trump that feature. RTE cereals require sturdy boxes to protect against product breakage, but single-serve cups and small pouches are also viable packages, Cassidy says.

And an out-of-the-ordinary packaging design could boost sales. All of Attune’s Peace brand cereal will eventually be packaged in cartons with beveled (sloping) edges, Cassidy notes — something that could be an unusual, beneficial way to package store brand cereal.

Grab their attention

In addition to great packaging, secondary and shipper displays that merchandise a variety of store brand breakfast products throughout the store could help increase sales.

“Granola pairs well with yogurt,” Cassidy points out, “and you can also place shipper displays of various products near the eggs. And when consumers see two products for $6, they’ll usually buy two products.”

And store brand breakfast products should be promoted as all-day fare.

“I travel quite a bit for my job. When I get in late at night, many times my dinner is a bowl of cereal because it’s easy, quick to prepare and nourishing,” Cassidy notes.

Do consider investing in nutritional and portability improvements for store brand breakfast foods.

Don’t limit own-brand breakfast offerings to “me-to” products.

Do add more natural and organic breakfast store brand options.

Don’t forget to cross-merchandise own-brand breakfast items throughout the store.