Kellogg’s is taking its Nutri-Grain brand into the growing breakfast biscuit market.
Nutri-Grain will be going head-to-head with Kraft’s Belvita brand this month when it rolls out a three-strong range designed to capitalise on growing demand for on-the-go morning foods. Value sales of breakfast biscuits have rocketed 115% over the past year to £40m [Symphony IRI 52 w/e 19 May 2012].
The biscuits will be available in oats & honey, fruit & fibre, and cereal & milk variants, in boxes containing six packs of four biscuits (rsp: £2.49). Individual packs (rsp: 55p) will roll out to the convenience channel.
While the breakfast biscuit category had been thriving in markets such as France for several years, UK penetration had started to stall over the past six months, claimed Kellogg’s snacks controller Ian MacKenzie.
Although market penetration more than doubled from 5.9% to 12.1% between May 2010 and May 2011, growth has slowed slightly and penetration currently stands at 16.9% [Symphony IRI 52 w/e 19 May 2012].
Kellogg’s had dipped its toe in the market at the start of this year under its All-Bran brand, but Nutri-Grain would act as a “beacon brand” for the category, said MacKenzie.
“Belvita has done a great job of pioneering the category but penetration has started to plateau,” he said. “Kellogg’s heritage, combined with Nutri-Grain’s appeal, offers retailers much-needed competition in breakfast biscuits.”
The launch would be supported by a £3m spend for the wider Nutri-Grain brand over the next six months including a TV ad - its first in two years - as it looks to hit £100m within five years.
Kraft expanded its Belvita brand in January with new flavours after smashing second-year sales targets to reach more than £27m at the end of last year.