Private label was Western
Europe’s second largest breakfast cereal brand in 1998, according to data from
leading market analysts Euromonitor International.
German private label cereal
sales grow by a quarter
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In Germany, where Kellogg
have just announced that they will be supplying Aldi with own brand products,
value sales of private label breakfast cereals rose by 26.6% over the 1994-1998
period. Recent product developments mean that there is little perceived difference
in quality between private labels and top branded products.
Breakfast cereals Company
Shares in Western Europe / % retail value
| Company | 1998 |
| Kellogg Co |
41.2 |
| Private label |
13.9 |
| Cereal Partners Worldwide |
12.4 |
| Weetabix Ltd |
8.4 |
| Quaker Oats Co, The |
3.1 |
In the UK, increased penetration
of private label breakfast cereals has forced real value into decline, despite
a slight gain in volume as demand for premium-priced health-orientated cereals
offset price reductions at the lower end of the market. Private label sales
also contributed towards the sluggish real value growth of just 1.9% and 0.3%
in Germany and Spain respectively in 1998.
Future growth to come from natural and convenient products
Kellogg are trying to develop
a new “mass premium” segment of the US market, comprising added-value
products such as K-Sentials with minerals and vitamins, in order to drive up
profitability. Euromonitor predicts that future volume growth will come from
portable snack- and convenience-orientated products while value growth will
be boosted by premium-priced, health-orientated breakfast cereals.
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By GlobalData
