See Sales Rise and Shine

Breakfast is still the most important meal of the day — but it’s not the same meal it used to be. For one thing, today’s adult consumers are a lot less likely to start the day with a bowl of cereal. As one recent Bloomberg Business article about slumping cereal sales notes, “Both parents often work and no longer have time to linger over a serving of Apple Jacks and the local newspaper. Many people grab something on the way to work and devour it in their cars or at their desks while checking e-mail.”

Fast food chains are already trying to meet the changing needs of today’s breakfast eaters. Taco Bell, for example, introduced its own breakfast menu last year, and McDonald’s recently announced that it soon will be serving the morning meal all day.

Retailers could meet the needs of today’s consumers by offering breakfast foods that are both convenient and healthful, at a price point that offers value.

“Consumers still rank breakfast as the most important meal of the day, and retailers are successfully growing their private label businesses by answering these consumer demands with high-quality, affordable products,” says Bob Howard, vice president of retail marketing for Cincinnati-based AdvancePierre Foods, a provider of value-added proteins and sandwiches.

Make breakfast easy

A key word for retailers’ store brand breakfast offerings also should be portability.

“Portability and on-the-go eating [are] driving trends in breakfast,” says Joe Meehan, vice president of sales and marketing for Barrington, Ill.-based Attune Food Group, a division of Post Food Group, which produces a variety of cereals and other products.

Retailers also shouldn’t assume that consumers planning to eat their breakfast at work will buy it on the way there.

“Although breakfast often is eaten on the go or outside of the home, studies have shown that most consumers still source their breakfast from home, making the demand for portable, easy-to-prepare options a common theme among all consumer demographics,” Howard says.

Two portable breakfast items that are growing in sales are cereal bars and granola bars. According to “Nutritional and Cereal Bars in the U.S.,” a report published in February by the Packaged Facts division of Rockville, Md.-based MarketResearch. com, 44 percent of adults purchased cereal/granola bars in 2014, an increase of 8.4 percent from 2009. And data from Chicago-based market research firm Information Resources Inc. for the 52 weeks ending July 12 show dollar sales of private label breakfast/cereal/snack bars growing 11.9 percent in comparison to the prior-year period.

But shoppers want hot options, too. Portable handhelds such as microwavable sandwiches or burritos are also a growing segment of the breakfast category, but one that some retailers have somewhat overlooked for their store brand offerings.

“The private label handheld breakfast category is notably underdeveloped,” Howard points out.

Despite consumers’ desire for quicker options, retailers shouldn’t forget the products shoppers might also want for a more leisurely weekend breakfast.

“When time is more plentiful, shoppers are looking for more involved breakfast options that they can prepare homemade,” says Ryan Toreson, director of private brands for Omaha, Neb.-based ConAgra Foods, adding that “organic and natural eggs, pork products, breads and ingredients for homemade waffle, pancake and French toast items are growing in preference with the younger-generation Y and Z consumers.”

Think better for you

Along with breakfast foods that are easy to eat, consumers also are demanding products that offer real nutrition, so better-for-you foods are booming in the breakfast category.

“For the fast-paced weekday meal occasion, consumers want the same convenience and taste they are accustomed to, but with cleaner ingredient statements and less fat, carbohydrate and sodium penalties,” Toreson says.

Across the board, industry experts point to protein as the current star of the category.

“Items with higher protein have been a big trend in this category as consumers are looking for breakfast items that will keep them energized throughout the day,” says Nikki Andrade, marketing associate for Marlborough, Mass.-based Barbara’s, Weetabix North America and Alpen, manufacturers of both private label and branded cereal, granola and snack products.

When it comes to more healthful cereal and granola bars, Packaged Facts says the drive for protein is even being seen in the addition of pea protein to some bars.

“Studies have shown that protein is a powerful nutrient that helps strengthen and sustain the body — and may help manage weight — when eaten for breakfast,” Howard says of the interest in protein.

Natural and organic products are also a big seller in the category, and retailers should consider including them in the store brand product lineup.

“Natural and organic item emulations are huge opportunities for store brand expansion. Typically, organic and healthier items charge significant premiums over their mainstream counterparts and can really stretch consumer’s budgets,” Toreson says, pointing out a study conducted by a Fortune 500 CPG company for Keasbey, N.J.-based Wakefern Food Corp. showing that 92 percent of shoppers trust retailers to offer quality store brand natural and organic foods.

What isn’t hot is sugar, even for sweeter breakfast foods.

“At the very least, consumers are looking for cereals and granolas with real ingredients, meaning no artificial flavors and no processed syrups and sugars,” Andrade says. “Awareness about the harmful effects of all types of sugar and artificial ingredients is spreading rapidly, with larger brands even adjusting their products to reflect this consumer demand.”

Play up promotion

Having the best store brand breakfast foods in the store is only half the battle in growing sales — there is also the matter of effectively marketing store brand breakfast options over the branded items. One means of connecting with shoppers is through giving them choices at different price points.

“Consumers like options,” Howard says. “Retailers with a dual assortment of private label and branded offerings are growing 40 percent faster than branded-only retailers in frozen breakfast. Retailers using a tiered good-better-best approach give consumers the choices they desire, with private label brands typically offering a 20 percent or more savings over the national brand.”

Proper placement of store brand breakfast products is important, too.

Toreson points out that in the frozen section, unaware consumers will “walk past a door of store brand breakfast items only to stop at an Eggo or Jimmy Dean door a few feet away.” To prevent such scenarios, he recommends placing store brand alternatives directly side-by-side branded items or above/below them.

Displays are also key to getting store brand items noticed.

“Feature and display programs are especially effective for the breakfast food category,” Toreson says. “Many breakfast foods are routine purchases, and shoppers can easily overlook temporary price reductions/hot pricing if you can’t capture their attention.”

Packaging size, too, can have an impact on sales.

“Band packs and multi-packs drive incremental sales and offer the opportunity to showcase new product launches,” Meehan says, adding that modular pallet display vehicles and retail-ready shippers can also make a difference.

While identifying and creating the right mix of breakfast products — and marketing and promoting them — can take a lot of effort, retailers should remember the long-term benefits of an effective store brand presence in the breakfast category.

“Retailers are building their brands by being more than just repositories for groceries; they’re resources and partners in feeding families,” Howard points out. “By investing in marketing the store brand, they are elevating its status as a brand and giving customers a reason to come exclusively to their store for their private label offerings.”

Do invest in convenient portable breakfast options.

Don’t ignore consumers’ desire for better-for-you breakfast items.

Do consider the protein trend in the development of new breakfast offerings.

Don’t discount the marketing power of displays.