Two of Nestlé's biggest cereal brands Shreddies and Shredded Wheat have become the victims of the steaming performance of hot cereals.
Shreddies and Shredded Wheat sales dropped last year by 7% to £46.2m and 10.3% to £43m respectively, according to IRI data compiled for The Grocer [52w/e 9 October 2010].
Volume sales also fell, by 3.1% for Shreddies and 6% for its stablemate. Nestlé said "a combination of issues" were to blame.
"Last year got off to an unseasonably cold start, which saw consumers switch to hot cereals, driven by porridge oats, which stole volumes from ready-to-eat (RTE)," said Andrew Pyne, corporate affairs communications manager, Nestlé Cereal Partners.
"At the same time, the average price of hot cereals remained cheaper than RTE in 2010, which gave consumers added incentive to buy during the economic instability. Shoppers kept buying hot cereals through the year, without stopping in spring, as per previous years," said Pyne.
In an attempt to boost Shredded Wheat sales, Nestlé is launching a multimillion-pound campaign to encourage younger consumers to tuck in.
The push kicked off with a new TV ad this Monday [10 January], supported by press and digital activity. Featuring the voice of TV presenter Melanie Sykes and backed by a track from the Isley Brothers, the ad demonstrates the different ways to enjoy the brand.
Further commercials are set to follow later in the year together with two new launches, details of which are still under wraps.
Focus on Cereals
Shreddies and Shredded Wheat sales dropped last year by 7% to £46.2m and 10.3% to £43m respectively, according to IRI data compiled for The Grocer [52w/e 9 October 2010].
Volume sales also fell, by 3.1% for Shreddies and 6% for its stablemate. Nestlé said "a combination of issues" were to blame.
"Last year got off to an unseasonably cold start, which saw consumers switch to hot cereals, driven by porridge oats, which stole volumes from ready-to-eat (RTE)," said Andrew Pyne, corporate affairs communications manager, Nestlé Cereal Partners.
"At the same time, the average price of hot cereals remained cheaper than RTE in 2010, which gave consumers added incentive to buy during the economic instability. Shoppers kept buying hot cereals through the year, without stopping in spring, as per previous years," said Pyne.
In an attempt to boost Shredded Wheat sales, Nestlé is launching a multimillion-pound campaign to encourage younger consumers to tuck in.
The push kicked off with a new TV ad this Monday [10 January], supported by press and digital activity. Featuring the voice of TV presenter Melanie Sykes and backed by a track from the Isley Brothers, the ad demonstrates the different ways to enjoy the brand.
Further commercials are set to follow later in the year together with two new launches, details of which are still under wraps.
Focus on Cereals
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