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Cereal

Despite being on the upswing for the last three years, cereal has lost ground in supermarkets, slipping 1.4% in dollar sales to $6 billion. The drug store channel, however, posted a 4.3% rise in dollar sales to $179.9 million for the 52 weeks ending June 13. A big factor in the growing drug store business is that CVS, Walgreens and other big chains are expanding their food offerings, allowing shoppers

Despite being on the upswing for the last three years, cereal has lost ground in supermarkets, slipping 1.4% in dollar sales to $6 billion. The drug store channel, however, posted a 4.3% rise in dollar sales to $179.9 million for the 52 weeks ending June 13. A big factor in the growing drug store business is that CVS, Walgreens and other big chains are expanding their food offerings, allowing shoppers to pick up household food staples while getting their prescriptions filled.

Meanwhile, manufacturers are working to lure more shoppers to the cereal aisle with new better-for-you reformulations. General Mills, for instance, cut sodium by 16% in its Cheerios and Honey Nut Cheerios brands. And Kellogg has added fiber to many of its ready-to-eat cereals. By the end of 2010, nearly 80% of Kellogg's U.S. ready-to-eat cereals will at least qualify for a “good source of fiber” claim.

52 WEEKS ENDING JUNE 13, 2010 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $6.0B -1.4
Drug $179.9M 4.3
F/D/Mx $6.5B -1.4
CALENDAR YEAR 2007 2008 DOLLAR SALES 2009
Supermarkets $5.9B $6.1B $6.1B
Drug $9.2B $173.1M $169.4M
F/D/Mx $6.4B $6.6B $6.6B