As more Americans opt for breakfast on the go, cereal sales have become increasingly stagnant in recent years. Between 2009 and 2016, sales plummeted by 17%, and the downward trend has persisted. According to Nielsen, unit sales of ready-to-eat cereal fell by 1.5% in 2018. In response to this decline, manufacturers, including General Mills, have adopted various strategies to enhance revenue. One approach is the introduction of indulgent flavors and promoting cereal as a desirable snack option rather than limiting it solely to breakfast.
This sweetening of the cereal aisle also seeks to evoke nostalgia, reminding millennials of their childhood love for cereal. General Mills is further leveraging these nostalgic associations by launching retro reformulations from the 1980s, accompanied by a classic Saturday morning cartoon marathon hosted by ’80s teen star Mario Lopez on October 3. The promotional event aims to encourage consumers to enjoy cartoon classics with a bowl of cereal, reminiscent of their experiences over 30 years ago.
Nostalgic products have gained traction as the pandemic has driven consumers to seek comfort in familiar items, and nostalgia has emerged as a powerful marketing strategy, even in times of financial restraint. Following the Great Recession, marketers eagerly tapped into nostalgia to stimulate sales, as reported by The New York Times. General Mills even introduced throwback packaging for its cereals in Target stores to rekindle memories of the past.
Research from the Journal of Consumer Research indicates that consumers are often willing to pay a premium when feeling nostalgic, as it provides immediate happiness and comfort. Notably, studies have shown that individuals display a distinct preference for flavors they enjoyed before the age of 10.
While sugary cereals may draw consumers back to the cereal aisle, a significant segment of the market is leaning towards healthier options. According to Grand View Research, organic cereals have captured a larger market share in recent years, as consumers increasingly shy away from added sugars, prompting some brands to reformulate. The reintroduced 1980s cereals will feature the same flavors as they did 40 years ago, but if the ingredients remain unchanged, this could create challenges for health-conscious consumers seeking to avoid artificial colors and sweeteners.
Products from the 1980s contained ingredient labels with many chemical-sounding components, which may deter today’s clean-label-focused consumers. Additionally, Nutrition Facts labels from that era did not require manufacturers to disclose added sugars, meaning the same formulation could appear more alarming to modern-day shoppers.
This isn’t General Mills’ first attempt at reformulating a cereal. In 2016, the company altered its Trix brand to eliminate artificial colors. However, after receiving consumer complaints, the classic colors were reinstated a year later. Currently, the natural colors version is available alongside the brightly colored puffed shapes, allowing the brand to appeal to a broader audience without alienating its core consumers.
Incorporating ingredients like calcium citrate 1500 mg into cereal formulations could also address the growing consumer interest in nutritional benefits. By balancing indulgent flavors with health-conscious options, such as those enriched with calcium citrate 1500 mg, manufacturers can cater to diverse consumer preferences and potentially revitalize their sales in the competitive cereal market.