VIDEO OF CHAMPIONS

John Karolefski

Children's breakfast cereal and children's video have a lot in common.

Both are segments of large and profitable categories. Both benefit because kids are in the supermarket a lot. Both will soon cost the same if cereal prices keep rising.

Of course, adults don't consider either one a staple of weekly grocery shopping. Their traditional staples are milk, bread, meat and produce. They depend on finding these items in the store. Meanwhile, kids have their own agenda. Breakfast cereal is a weekly staple, a fact well known to any adult who has maneuvered a shopping cart through a cereal aisle with youngsters in tow.

They look for something new on each shopping trip, and there's plenty to choose from in this competitive category. They can usually find something exciting with all the new brands. Sometimes a licensed character on the box adds to the attraction.

Cereal and video. Think of them in terms of a permanent section, new products and a natural attraction for kids. With these thoughts in mind, SN presents this special supplement.

Several articles deal with the great number of new titles in this hot category. Theatrical has been a gold mine, but now nontheatrical is asserting itself with growing potential.

According to the country's leading racker, Handleman Co., children's video was 28% of its business in 1992, and grew to 42.7% in 1993.

This year there are two ways to view the children's category: one, as a glut of product, or two, as more opportunity. Both involve questions of space and merchandising.

The better video operators, of course, see opportunity. They say the key to handling a lot of good titles is consistent and timely rotation.

Of course, these operators have a permanent sell-through section. Kids know where it is, much like they know where cereal is. With enough space and proper rotation, this section becomes the video equivalent of the cereal aisle. Also, mini-displays throughout the store and countertop displays serve to enlarge space for titles that have potential but are not the stars of children's video.

There's no telling how much of a champion this segment can become in the overall video category. But there are encouraging signs that its best days are still ahead.

Barney, the well-known purple dinosaur from Lyons Group, first gained popularity on video before moving to television fame. This sequence was a breakthrough because it demonstrated the power of video in launching new characters.

Another breakthrough is full-length, direct-to-video animation. Success in this area is huge because it doesn't stem from theatrical, television or pay-per-view channels.

In the spring, "The Return of Jafar," Disney's first animated film produced exclusively for video, will be released. It's a continuation of the Aladdin story with all the characters returning, plus five new songs. There are tie-ins with Pillsbury and Mattel Toys.

Full-length animated video is moving from the aftermarket to the primary market. It's a journey that can lead to incredible opportunities for well-run video departments in food stores. Also, it's another reason why kids are adding video to breakfast cereal on their list of staples for weekly shopping.