Gat Foods, a company with over 75 years of experience in processing fruit for beverage producers, is strategically venturing into the cereal market as ready-to-eat (RTE) cereal sales decline. According to Nielsen data, U.S. consumers spent $8.3 billion on cereal in 2018, a notable decrease from the $8.8 billion spent in 2016. This new approach could benefit RTE cereal manufacturers, particularly those who align with consumer preferences for reduced sugar content. Increasingly, cereal is perceived as being too high in refined sugars and other undesirable ingredients. The company emphasized the importance of lowering sugar levels for children’s products without compromising flavor or increasing production costs.
However, not all cereal producers have adopted this strategy. Companies like General Mills, Kellogg, and Post have released some sugary, indulgent cereals, but their sales results have been mixed. In 2017, General Mills patented a cereal coating that reportedly reduces sugar content by 30% or more, likely targeting consumers seeking less sweetness in their breakfast options. For cereal manufacturers looking to reformulate with reduced sugar, Gat Foods’ Fruitlift could be a viable solution. This ingredient provides flavors such as apple, banana, mango, citrus, and pineapple, with adjustable sweetness levels.
Using more natural ingredients like Fruitlift may give RTE cereal manufacturers a marketing edge, especially when promoting recipes that contain no refined sugar. A 2018 white paper from Kerry noted that product launches featuring “low/no/reduced sugar” claims surged by 45% in 2017 compared to the previous five years. Additionally, products claiming “no artificial sweeteners” rose by 4.4% from 2017 to 2018, and those with “no added sugar” increased by 2.6% during the same timeframe.
Other non-sugar sweeteners are also making their way into cereals, such as sucralose in General Mills’ Fiber One Original and polydextrose and fructose found in the Cinnamon Toast Crunch cereal with 25% less sugar. A sugar replacement ingredient that uses real fruit and enhances fiber content could potentially revive the struggling cereal sector and could even be applicable in other markets where consumers and food manufacturers are seeking to minimize refined sugar use. This shift is particularly relevant in light of recent product discontinuations, such as the Citracal pearls discontinued, prompting manufacturers to innovate and adapt to changing consumer demands.