Quaker Granola Full Range

PepsiCo-owned Quaker Oats is backing launch with TV advertising

Quaker Oats is launching a major push into the booming granola market.

The PepsiCo-owned brand currently has a single granola product in its line-up but from next week will begin rolling out three new ranges, each offering different formats. The launches come as overall granola sales are up about 20% by value and volume in a breakfast cereals market down 6.3% by value and 3.5% by volume [IRI 52 w/e 25 April 2015].

The new ranges, which will be backed with TV advertising and in-store activity, are:

  • Oat Granola (rsp: £2.69) in apples & cinnamon, honey & almond, and raisin, which is a rebrand of the existing Oat Granola SKU.
  • Wholesome Crunch (rsp: £3.89), a premium granola with mixed grains, fruits and nuts in pecan & Brazil nuts and goji & blueberry.
  • Warm & Crunchy Oat Clusters (rsp: £2.69), available in apples & cinnamon, Golden Crunch, and cranberry & apple, and sold in packs of eight sachets. It is designed to be warmed in a microwave.

Citing Kantar World­panel data, PepsiCo said only two in 10 UK households currently consumed granola, and there was “enormous headroom for growth”.

The ranges were aimed particularly at families that bought cereals but did not eat granola.

“By offering shoppers a new granola experience, we will help retailers boost breakfast sales,” said Duncan McKay, senior marketing manager for grains at PepsiCo.

Quaker sales slowed in 2014 after seven years of strong growth, partly as a result of increased competition in the porridge category, with value down 1.4% [Nielsen 52 w/e 3 January 2015].

McKay said Quaker’s porridge range continued to be enjoyed by consumers, adding “we believe it is the right time to bring the things people love about Quaker to an exciting new segment”.