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External Analysis on Cereal

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External Analysis on Cereal
ysisChildren’s breakfast cereal has become a part of Australian life . The convenience and nutritional value has seen generations of children start their day with one of the many choices on offer.
Australia and New Zealand have one of the highest consumptions of ready-to-eat cereals per capita in the world. Only the Republic of Ireland and the UK have higher consumption levels and children are the highest consumers of sweetened breakfast cereals, those containing over 25% sugar. (Kellogg Sales and Marketing 2010)
As a result of this popularity the breakfast cereal market is worth over $1.2 billion in retail sales per annum (Australian Breakfast Cereal Manufacturers Forum (ABCMF)).
The industry is dominated by a few large companies including Carman’s Fine Foods, Freedom Foods, Kellogg Australia, Nestlé Australia, Popina Foods, Sanitarium Health and Wellbeing, producing the many different brands familiar to breakfast consumers in Australia. Kellogg (Australia) Pty Ltd continues to lead breakfast cereals; however, its 44% retail value share in 2011 is expected to drop to 43% in 2012. ( Euromoniter 2011)
From a fortuitous error in 1898 the iconic Corn Flakes was created. The company has since expanded its range of products which are now sold in 180 countries throughout the world. (Kellogg’s History 2010) Kelloggs also produces both Coco Pops and Frosties, both aimed at the children’s market.
Cheerios are made by another large corporation, Uncle Toby’s, a brand familiar to Australians since 1893 although now owned by Nestle. (Uncle Toby’s 2012)
Coco Pops, Cherrios and Frosties have experienced great popularity within their market, but of late have suffered a decline in sales and popularity mainly due to a growing awareness of the effect of high sugar and sodium intake, and the effects of childhood obesity, on the health of young people. Choice for example as stated that :
About the best that can be said for most kids’ cereals is that they’re better than

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