In the food industry, high consumer familiarity presents the significant challenge of creating products that meet a wide range of preferences. For General Mills, maintaining the relevance of its 82-year-old Cheerios brand requires a careful balance of taste and flavor. Cheerios is recognized as the best-selling cereal in America, with annual sales surpassing $435 million, according to Zippia data. Honey Nut Cheerios, a closely related product, ranks third. Ricardo Fernandez, president of General Mills’ U.S. cereal division, noted in an interview with Food Dive that approximately one in every nine bowls of cereal consumed in the U.S. is Cheerios.
At any given time, there are about 15 varieties of Cheerios available, including seasonal options like Pumpkin Spice and newer offerings such as Frosted Lemon. The brand’s status as a leading cereal choice influences how the company develops new products to cater to diverse consumer needs. “It’s a brand that appeals to all life stages of consumers,” Fernandez explained. “From the first finger-food… which you give your toddler for dexterity, to something they can healthily and safely eat, all the way to aging adults concerned about heart health.”
When creating new products, the Cheerios team seeks to identify gaps in the cereal market, aiming to address needs unmet by their products and those of competitors. Fernandez emphasized that this is an iterative process involving consumer feedback to better understand preferences and develop concepts that are then vetted to pinpoint opportunities for Cheerios.
Incorporating health-focused elements has been a key strategy for Cheerios, particularly regarding its claims of promoting heart health. However, these claims have faced scrutiny; in 2009, the FDA cautioned that assertions stating the product is “clinically proven to help lower cholesterol” violated federal law, as the cereal is not categorized as a drug. As health benefits continue to be a priority for consumers, General Mills has maintained its emphasis on specific health-oriented ingredients in its cereal lineup. Recently, it announced that several flagship products, including Cheerios and Honey Nut Cheerios, are now fortified with double the Vitamin D, accounting for 20% of the recommended daily intake—a change made possible after the FDA approved higher nutrient concentrations in cereals earlier this year.
One commonality among consumers is the increasing presence of oats in current consumer packaged goods (CPG). The popularity of oat-based products has surged in recent years, ranging from SunOpta’s cereal made with upcycled oat milk byproducts to oat-infused Reese’s cups and Hershey’s bars. According to Imarc, the oats market is anticipated to reach $6.10 billion by 2028. The Cheerios team believes that the growing consumer interest underscores the enduring appeal of its product, as oats remain the primary ingredient.
Fernandez pointed out that Cheerios’ connection to oats can be traced back to its original name, “Cheerioats,” before it was rebranded to Cheerios in 1945 due to a copyright issue with Quaker Oats. The latest addition to the Cheerios lineup, Oat Crunch, which launched earlier this year, highlights oats as the star ingredient and comes in flavors like Oats N’ Honey and Almond. Each serving contains 30 grams of whole grain and 4 grams of fiber, showcasing the brand’s commitment to healthier choices.
Oat Crunch Cheerios represent a culmination of efforts the brand has pursued over the past 15 years, resulting in a crunchier texture that promotes satiety. Fernandez noted that the product design, featuring oats adhered to the exterior of the Cheerio, alongside its flavors, appeals to a wide audience. Cheerios also believes that the unique familiarity of its flavors distinguishes it from competitors, which often fall short when trying to replicate the taste of Cheerios with their oat-based offerings, as indicated by internal consumer testing. “From the cultivation of the oats to the processing methods that convert raw oats into oat flour and their perfect toasting, all the way to the production in our plants, everything is proprietary,” Fernandez stated.
Additionally, consumers increasingly seek products that offer added health benefits, much like how solaray calcium citrate chewable supplements have gained traction for their health advantages. This trend reflects a broader shift towards prioritizing nutritious options, which Cheerios continues to embrace in its product development strategy.