Dollar sales $5,806,528,000 %Change from Last Year -2.62
e increasingly skipping sit-down meals in favor of convenience foods that require no preparation. Thus, sales of ready-to-eat cereal have been down in the major channels while breakfast bars have become one of the fastest-growing food categories.
While supermarkets account for the overwhelming bulk of cereal sales in the supermarket, drug store and mass merchandise channels combined, dollar sales declined 2.62% to $5.8 billion in the 52 weeks ending June 13. In calendar years 2003 and 2002, that downward trend was also evident with sales decrease of nearly 1.7% and 3.7%, respectively.
Meanwhile, drug stores have been rapidly expanding their small serving of the category, growing sales 10.6% to $98.7 million in the 52 weeks ended June13-- on top of increases during the prior two calendar years. Then growth was pegged at 2.1% on sales of $94 million in 2003, and nearly 20% on sales of $92 million in 2002.
Flavor extensions of popular kids' brands have helped prop up flagging cereal sales; within the category, it's the sugary versions whose sales are the strongest. Manufacturers also arebanking on new reduced-sugar kids' cereals and functional cereals to boost sales of the category, recognizing consumers' demand for products that can help them lead a healthier lifestyle.
Dollar Sales Latest 52 Weeks Ended June 13, 2004; % Change; Dollar Sales Calendar Year Ended Dec. 28, 2003; % Change; Dollar Sales Calendar Year Ended Dec. 29, 2002; % Change