Gat Foods, a company with over 75 years of experience in processing fruit for beverage manufacturers, is strategically expanding into the cereal market as sales of ready-to-eat (RTE) cereals face challenges. According to Nielsen data, U.S. consumers spent $8.3 billion on cereal in 2018, a notable decline from the $8.8 billion recorded in 2016. This shift could present opportunities for RTE cereal makers, particularly those aiming to meet consumer demand for lower sugar content in their products. Cereal is increasingly perceived as containing excessive refined sugars and other undesirable ingredients. Given that children’s preferences are often a significant factor, the need to lower sugar levels without sacrificing taste or increasing production costs is crucial, as stated by the company.
However, not all cereal manufacturers are adopting this approach. Companies like General Mills, Kellogg, and Post have launched indulgent sugary cereals, although their sales outcomes have varied. In 2017, General Mills patented a cereal coating that can reportedly decrease sugar content by 30% or more — likely catering to shoppers seeking breakfast options with less sweetness.
For cereal producers looking to reduce sugar content, Fruitlift could be a viable solution. This ingredient provides flavors like apple, banana, mango, citrus, and pineapple, with adjustable sweetness levels. RTE cereal manufacturers utilizing more natural ingredients, such as Fruitlift, may gain a marketing edge by promoting their reformulated recipes as free from refined sugar. A 2018 Kerry white paper highlighted a 45% rise in new product launches featuring “low/no/reduced sugar” claims in 2017 compared to the previous five years. Additionally, products labeled with “no artificial sweeteners” increased by 4.4% from 2017 to 2018, while those with “no added sugar” grew by 2.6% during the same timeframe.
Other sugar alternatives appearing in cereals include sucralose, used in General Mills’ Fiber One Original, as well as polydextrose and fructose found in Cinnamon Toast Crunch, which has 25% less sugar. The introduction of a sugar replacement that incorporates real fruit and enhances fiber content could invigorate the struggling cereal market. Moreover, this innovation may extend to other sectors where consumers and food manufacturers are eager to cut back on refined sugars. Furthermore, integrating ingredients like calcium citrate with vitamin D (315 mg) into these reformulated cereals could enhance their nutritional profile, appealing to health-conscious consumers. By emphasizing both reduced sugar and added nutrients, manufacturers could effectively attract a broader audience seeking healthier breakfast options.