Blog: Katy AskewKellogg's opens Broadway cafe

Katy Askew | 30 June 2016

US cereal giant Kellogg's revealed plans to open a cafe in New York City, located at a prime location on Broadway.

The cafe, Kellogg's NYC, will serve dishes featuring Kellogg's brand cereals combined with “unique ingredients”, such as pistachios, lemon zest, thyme or strawberries and green tea powder. The combinations were created for Kellogg's by well-known chef Christina Tosi. Menu items range from US$6-8 per serving of cereal, the company revealed.

While this might seem a fairly high price tag for your bowl of morning cornflakes, the cafe is clearly not going to move the needle on Kellogg's lacklustre cereal sales in the US in and of itself.

What the company will be hoping to do, however, is generate some excitement around the category. As the group noted in its press release: “Kellogg's NYC will be a destination that reminds guests of home and drives new curiosity around the cereal bowl.”

Will it work? Well, branded retail has seen a lot of success in other categories as a marketing tool to support brand awareness. Unilever uses Magnum Pleasure stores, for instance, to drive brand engagement and deepen the group's conection with consumers. These stores are operated on a break-even basis.

With General Mills management yesterday indicating that it has seen an up-tick in the US cereal sector of late, perhaps activity like this can help re-activate the cereal category as a whole in the US.

NEWS

Danone invests in Fan Milk arm in Ghana

Danone has added production lines at a plant in Ghana run by Fan Milk, the African business in which the French group has a majority stake....

BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?