FoodStuff by Kevin Ryan
The Paradox of Cereal; The Functional Food DMZ
Here is a link to my last newsletter, in case you missed it.
Here are the contents of this edition:
Cereal Paradox: The category is dying, why is cereal merch so popular?
The Battle for Bakery: Can classic brands win consumers in a sea of channels?
Functional Food DMZ: A profit category just within reach
Gut Reaction: My quick take on the best, worst, and questionable in new launches
Tidbits: The latest in food industry news, from the profound to the funny
The Cereal Paradox
Collectibles company Super7 is launching a commemorative MF Doom action figure, cereal spoon, cereal bowl, and cereal box with games (no cereal included). The launch celebrates the 20th anniversary of the late hip-hop star’s album MM…Food. The collectable is now available for pre-order ($65).
Tostitos is teaming up with wide receiver Julian Edelman to launch limited-edition Tostitos Salsa Cereal kits based on the popular TikTok trend. As the name would suggest, salsa cereal involves crushing up tortilla chips and eating them with a spoon out of a bowl along with salsa. The brand is doing a video tutorial, in case that doesn’t make sense.
Protein powder brand KOS is launching a seasonal Cinnamon Cereal Crunch flavor. The product is vegan, organic, contains no dairy, gluten or soy, and has 20g protein (and 1g sugar) per serving.
Hismile, makers of uniquely flavored toothpastes, has launched Cereal Milk Toothpaste. The flavor is described as “your favourite breakfast cereal infused into creamy richness.” Currently sold out on the Hismile website.
Shaquille O’Neal’s Big Chicken restaurants are partnering with Kellogg’s on a new Frosted Flakes Shake. The limited time only product is a blend of Big Chicken’s vanilla ice cream shake with Kellogg’s Frosted Flakes, topped with crushed Frosted Flakes and whipped cream.
Kellogg’s has launched a limited edition Squishmallow Cereal. The new cereal, similar to General Mills’ Lucky Charms but with Squishmallow marbits, is a Costco exclusive, available now through the end of the year in select US Costco stores. Early reviews indicate some dissatisfaction from young Squishmallow fans who were expecting a signature plush in the box (or the ability to send away for one).
So What? While COVID-19 offered a momentary growth spike in cereal category sales, the overall decline of the category is evident. Sales of cereal continue to slip as consumers (especially younger demographics) have looked toward more protein-rich and/or warm alternates at breakfast. Therefore, it’s always so surprising to see how prominent cereal remains in modern culture. From clothing to collectibles, cocktails to colognes, cereal remains a consumer draw, except when it comes to the breakfast table. What’s going on here?
"People need dramatic examples to shake them out of apathy and I can't do that as Bruce Wayne. As a man, I'm flesh and blood, I can be ignored, I can be destroyed; but as a symbol... as a symbol I can be incorruptible, I can be everlasting"
Bruce Wayne, Batman Begins
For countless consumers, the memory of pouring a bowl of cereal is intertwined with childhood rituals—early morning cartoons, sleepovers, and the freedom and autonomy of choosing a favorite sugary treat without parental oversight. This sense of nostalgia infuses cereal with emotional significance that extends beyond its nutritional value. For today’s adults, cereal (the product) represents the opposite of their nutrition goals, but cereal (the symbol) represents everything about what they strive for (joy, autonomy, and nostalgia).
Therefore, we arrive at this strange era where ‘symbolic cereal’ is strong, and ‘category cereal’ is suffering. Interestingly, soda and snack chips are in a similar space of ‘symbolic consumption,’ where consumers still want to interact with the essence of the product, if not the actual product. Not surprisingly, we seeing these brands issue an incredible amount of merch and cross-category collabs symbolically celebrating these products or attempting to recreate them with better nutrition.
However, this symbolic era won’t last forever. The generations with the strongest emotional and nostalgic connections to cereal (Gen X and Millennial) will grow older, and the symbolism of these brands will lose its power. To stay relevant, these brands must look beyond nostalgia-driven consumption and focus on what makes them culturally or experientially engaging for a generation that may not have grown up on them. Here they can take inspiration from a surprising source: vinyl records.
Vinyl didn't resell itself on nostalgia alone; it became a lifestyle, a status symbol, and a point of self-expression for those who never experienced its original era. Cereal brands can similarly reinvent themselves, not by simply banking on nostalgia, but by tapping into new cultural movements, trends, and values that resonate with younger generations who crave uniqueness and meaningful experiences. Brands need to position themselves not just as a relic of the past but as part of the cultural fabric of the future—where the symbols of cereal (if not the product) still holds sway.
The Battle for Bakery
Belgian Boys has launched a Walmart exclusive, Bite Size Pancakes & Go! The product includes a cup with 9 mini-pancakes and Sprinkle Butter. Consumers microwave the cup for 45 seconds and can take it on the go.
Pillsbury has launched Toaster Donut Pastries with the arrival of a Boston Cream, Rainbow Sprinkle, and Frosted varieties. Like classic Toaster Pastries, these are heated in an oven, toaster oven or microwave and topped with the included icing. I’m guessing the texture of these is similar to the Donut Shop Toaster Pastries Pillsbury launched ~5 years ago.
Cicis Pizza has partnered with Eggo (a Kellanova brand) to launch Chicken and Eggo Waffle Pizza. Available in store or to-go, the pizza consists of cheese, sauce, crispy chicken, Eggo waffle pieces and a drizzle of maple syrup.
Retail cookie chain Chip City Cookies has partnered with Pop Tarts to launch an LTO Strawberry Poppable Pop-Tarts Cookie this Fall. The cookies are made with a vanilla sugar cookie base filled with strawberry jam and topped with vanilla icing and Pop-Tarts Crunchy Poppers. Available on select dates through November.
At the NACS show last week, Flowers Foods showcased their expansion of their Wonder brand into sweet packaged goods for the convenience channel. CinnaTwists packaged pecan cinnamon rolls and Confetti Cakes were on display. More news on these in 2025.
So What? Despite a warm and fuzzy bump in at-home baking during the pandemic, we’ve seen a return to growth in convenient baked good sales, whether in c-stores , grocery bakery or chains like Crumbl (although here we’re seeing some troubles emerge). This leaves traditional grocery packaged good baked goods in trouble. Why go through the trouble of heating up a Pop Tart or a Toaster Pastry if you can grab a fresh cookie at the corner gas station?
To survive, we are seeing brands these brands utilize several strategies.
Mimic the Fresh-Baked Appeal: Pillsbury’s move to donuts provides the experience of a freshly made donut in-home. There is a lot to like here. If they can deliver on real fresh-baked flavor in a convenient way it unlocks an experience that is difficult to get otherwise (other than waiting outside a Krispy Kreme for the light to turn on). In fact, it makes me wonder why air fryer baked goods aren’t more of a thing.
Portability and Flexibility: This is a more difficult strategy because you often lose some of the characteristics of the original product when you make it portable. However, the brilliance of the Belgian Boys product is that pancakes typically aren’t portable (unless you live in the hilarious Kyle Kinane universe), so the novelty of portability is a driving benefit.
Elevated, Cross-Category Innovation: If you can’t beat’um, join’um. Moving into a new channel has the benefit of potentially reminding (or introducing) your product to a consumer (see Pop Tart Poppers and Eggo above). The problem with this is that you often don’t see the lift on the retail product unless you work hard to link consumers back to grocery.
Customization: This is still one of the prime benefits of the at-home product, but it needs more innovation. Pre-made products are often fresh and delicious, but they are complete. While that works for many, they lack the personalization that many seek in these types of emotionally-laden products.
Health and Wellness Positioning: Most out-of-home baked goods focus on pure indulgence, and while this sits well with most consumers (it is baked goods, obviously), there is also a subset that wants cleaner or better-for-you options. This niche is still an opportunity for in-store brands. Of course, threading the needle between great taste and BFY is the tricky part.
The Functional Food DMZ
Cold pressed juice company Pressed Juicery has partnered with natural supplement brand Cymbiotika for a new Immunity Smoothie Bowl offering. The bowl contains 12g plant-based protein, 1200% of the RDA for vitamin C, and is topped with fresh fruit (pineapple, coconut, and banana), Cymbiotika Vitamin C, and bee pollen. Available at Pressed Juicery stores nationwide.
RTE meal kit maker Factor_ (a HelloFresh company) has launched a new subscription supplement brand called Factor Form. Made up of dietician approved, keto friendly, zero sugar on-the-go packets of greens powder, protein powder, and hydration booster packs, the new service says it will “Turn your nutrition on auto-pilot.”
Supplement maker Modere has launched a “Body Transformation System featuring Curb and Sculpt.” Curb, the brand claims, offers a proprietary blend that “supports natural GLP-1 production to help control appetite and hunger for both immediate and long-term weight management support.” Sculpt is a blue raspberry flavored powder designed to “help build lean muscle, boost performance, and reduce muscle soreness.” Available on the brands website.
Supplement company Rootless has launched a new flavor variety of their Daily Bites. The new Double Strawberry Daily Bite combines dates, almonds, seeds and seaweed to provide iodine and 40+ essential macro and micronutrients. The brand claims the Bites help “beat fatigue, while improving your metabolism and digestion in just 30 days!” Available on the company’s website.
So What? When supplements existed only as an aisle of pills and powders in a health food store, they seemed far removed from the food and beverage space. However, every year, the supplement world is moving further into the realm of CPG. This says something both about consumers and about the industry itself.
Younger consumers are continually seeking food to be more functional. Data from Kroger’s 84.51 last year showed that, unlike previous generations, younger consumers believe that food can benefit just about every bodily system. As these younger consumers age, we’ll likely see them push harder for foods to deliver the benefits they’ve come to expect from supplements.
At the same time, CPG companies (especially large ones) are hesitant to enter the functional food space. A series of attempts in the late ‘90s and early '00’s were met with regulatory pullbacks and legal issues. They aren’t likely to make bold entries again and supplement companies are taking advantage of this obvious gap.
Of course, this doesn’t mean supplement companies are in the clear here. As they move closer to traditional food and beverage, I think we’ll see more scrutiny put upon them by regulatory agents (some at the insistence of CPG companies).
Therefore, it is this new middle space, where CPG companies dare not enter and supplement companies look for growth, that we should all be watching. There is something very big and profitable here, but no one has cracked it just yet.
GUT REACTION
TIDBITS
Korean scientists develop hovering shopping cart (the ‘Palletrone’)
Why ‘short corn’ might fill fields in the future
America’s love and hate for the chicken nugget
Schwann’s Home Delivery ceases service after 72 years
Albertson’s announced new own label brand: OverJoyed
McDonald’s is finally selling the Chicken Big Mac in the US
Doordash lists the top candy trends for Halloween
Bad day? Pop some bubbles (mindless, but addictive, fun)
How restaurant chains use smell to entice us
Whole Foods customers are losing it after the retailer changes their beloved Berry Chantilly Cake
After 30 years, the National Retail Federation will not be publishing their annual shrink report this year
Sen. Elizabeth Warren sends letters to General Mills, Coca-Cola and PepsiCo demanding they stop shrinkflation
Sam’s Club is looking to use cashier-less stores to win over Costco shoppers
McD’s sues Tyson and JBS alleging beef price fixing
Lamb Weston, McD’s French fry supplier, cuts workforce as sales of fries nosedives
The obesity rate in U.S. adults is no longer growing, new CDC data suggests (in fact, Americans seem to be getting healthier by a few metrics)
WeightWatchers starts selling low cost, compounded GLP-1 drug Wegovy
After closing their human clinics early this year, Walmart now is opening pet clinics and grooming studios in stores
Traveling internationally on JetBlue? Don’t expect a hot meal anymore
Instacart is looking to gamify grocery shopping with their new Caper Cart that digitizes the in-store experience (brands like General Mills, Mondelez, and PepsiCo are already experimenting with the tech)
Kroger is now adding Disney+ streaming services to their Kroger Boost program
California just became the first state to Ban Sell-By Dates
Who do US adults follow on TikTok? Apparently not people talking about food and beverages
General Mills is arguing that Welch’s Fruit Snack ads went too far