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Cereal Analysis Paper

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Cereal Analysis Paper
Description
One of my favorite things to eat is breakfast cereal. I have been a cereal eater since I was a kid and have chosen to do my paper on the breakfast cereal industry. The NAICS code is 311320. The SIC code is 2043 Cereal Breakfast Foods. The SIC gives a description of establishments as primarily engaged in manufacturing cereal breakfast foods and related preparations, except breakfast bars. Cereal breakfast foods include: coffee substitutes made grain, hulled corn, farina, granola (except bars and clusters), hominy grits, infant cereal foods, oatmeal, rolled oats, rice breakfast foods and wheat flakes.
History
Breakfast cereal is one of the most popular forms of breakfast in the United States. Just about all of us have had and enjoyed a bowl of cereal in the morning. The breakfast cereal industry is very profitable and has been around a long time. In 2007, the market value for the industry was $11.2 billion (Datamonitor, 2007). The breakfast cereal was first invented in 1863 by Dr. James Caleb Jackson who made the granula. The granula was a hard wheat that had to soak overnight before it could be eaten. Later the popular Corn Flakes was invented and today there are many varieties of cereal to choose from.
There were a number of individuals who made various forms of cereal as a diet for its patients of the Sanitarium in Battle Creek, Michigan. The cereals that were made however were not for mass market. Not until 1906 was there a patent for cereal, and Corn Flakes were mass marketed by The Kellogg Company. The Kellogg Company, however, was not the first company to mass market cereal. The first was The Shredded Wheat Company, which sold shredded wheat. The Shredded Wheat Company was sold later to what is now known as Nabisco. Although there were a few companies producing breakfast cereal for consumers, The Kellogg Company was the largest and most productive.
Corn Flakes were very popular in American households. Soon after, there



References: Clauson, A (1997). Economic factors holding down food prices increases. Food Review, 2-4. Datamonitor (2007). Breakfast cereal in the United States: Industry profile. Datamonitor. Com. Retrieved April 10, 2008. www.datamonitor.com. ElAdmin. A. (2006). Cereal price forecast to rise as demand soars. Foodnavigator- .com Federal Trade Commission (1996). FTC negotiates settlement to keep cereal prices competitive Food Manufacturing Industry Information. CollegeGrad.com. Retrieved April 21, 2008. Ippolito, P.M. & Mathios, A.D. (1989). A study of the cereal market. Federal Trade Commission, 1-158 Nevo, A. (2001). Measuring market power in the ready-to-eat cereal industry. Econometrica, Vol Price, G. (2000). Cereal sales soggy despite price cuts and reduced couponing. Food Review, 23 21-28. Reimer, J. (2004). Market conduct in the U.S. ready-to-eat cereal industry. Journal Of Agricultural & Food Industrial Organization, 2, 1-29. Spake, A. (2005). Utopia in a cereal bowl. U.S. News and World Report, 139, 46. Worrell, M. (2007). Grain price hikes squeeze food chain. CnnMoney.com. Retrieved April 20, 2008 http://money.cnn.com/2007/12/11/smbusiness/grainprices.

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