The activity seems to have paid off the most heavily promoted brand, Special K, is also the biggest-selling [SymphonyIRI 52w/e 9 Oct 2010], although Kellogg's is struggling to add value against the rise of 'healthy' cereals such as porridge and muesli.
Special K accounts for 11.96% of all cereal promotional activity, a percentage point increase on the previous year, when it lagged behind fellow Kellogg's brands Coco Pops and Crunchy Nut. Promotions encouraged more purchases of Special K, leading to a 2.5% increase in volume sales, but there was a price to pay value sales, which fell 0.4% to £121.9m [SymphonyIRI].
And the impact was even more stark on Corn Flakes, which saw the biggest increase in promotions (up by 2.7%), but a 4.2% fall in value, with only Coco Pops and Bran Flakes promoted less than in 2009.
Focus On Cereals