The U.S. Market for Breakfast Foods and Beverages

TABLE OF CONTENTS

Chapter 1: Executive Summary

• Scope and Methodology
  • Market Scope
  • Report Methodology
• The Market
  • Retail Sales Exceed $24 Billion
  • Figure 1-1: U.S. Retail Sales of Breakfast Foods, 2000-2004 (in millions of dollars)
  • Eggs, Other Breakfast Foods, and Meats Post Healthy Gains
  • Yogurt Drinks, Egg Substitutes, Breakfast Bars Pace Growth
  • Supermarkets Account for 70% of Sales
• The Marketers
  • Marketer Overview
  • Top Four Dominate Cereal But Losing Share
  • Figure 1-2: Top Breakfast Food Marketers by 2004 Share of IRI-Tracked Sales (percent)
  • Licensing an Important Market Component
  • The Big Get Bigger
  • Strong Competition from Private Label
• Marketing and New Product Trends
  • Advertising Trends
  • New Product Trends
    • "Better-for-You" Is Overriding Trend
    • The Move to Whole Grain
    • The Low-Carb Wave
  • Convenience Still a Major Driver
• The Consumer
  • 18.5% of Adults Consider Breakfast Most Important Meal
  • Figure 6-1: Usage Rates for Selected Breakfast Foods, 2004 (U.S. adults)
  • Brand Preferences: Adults vs. Teens vs. Kids
• Looking Ahead

Chapter 2: The Market

• Market Size and Growth
  • Market Definition
  • Figure 2-1: U.S. Retail Sales of Breakfast Foods, 2000-2004 (in millions of dollars)
  • Methodology for Sales Estimates
  • Retail Sales Exceed $24 Billion
  • Table 2-1: U.S. Retail Sales of Breakfast Foods, 2000-2004 (in millions of dollars)
  • Eggs, Other Breakfast Foods, and Meats Post Healthy Gains
  • Table 2-2: U.S. Retail Sales of Cereal and Breakfast Bars, 2000-2004 (in millions of dollars)
  • Table 2-3: U.S. Retail Sales of Breakfast Meats, 2000-2004 (in millions of dollars)
  • Table 2-4: U.S. Retail Sales of Eggs and Egg Substitutes, 2000-2004 (in millions of dollars)
  • Table 2-5: U.S. Retail Sales of Other Breakfast Foods and Beverages, 2000-2004 (in millions of dollars)
  • Table 2-6: U.S. Retail Sales of Breakfast Breads, 2000-2004 (in millions of dollars)
  • Figure 2-2: Share of U.S. Retail Sales of Breakfast Foods by Category, 2000 vs. 2004 (percent)
  • Supermarkets Account for 70% of Sales
  • Figure 2-3: Share of U.S. Breakfast Food Sales by Retail Channel (percent)
  • Mass-Market Sales Approach $18 Billion; Eggs and Breakfast Meats Power Increase
  • Table 2-7: U.S. Mass-Market Sales of Breakfast Foods, 2000-2004 (in millions of dollars)
  • Table 2-8: U.S. Mass-Market Sales of Cereal and Breakfast Bars, 2000-2004 (in millions of dollars)
  • Table 2-9: U.S. Mass-Market Sales of Breakfast Meats, 2000-2004 (in millions of dollars)
  • Table 2-10: U.S. Mass-Market Sales of Eggs and Egg Substitutes, 2000-2004 (in millions of dollars)
  • Table 2-11: U.S. Mass-Market Sales of Other Breakfast Foods and Beverages, 2000-2004 (in millions of dollars)
  • Table 2-12: U.S. Mass-Market Sales of Breakfast Breads, 2000-2004 (in millions of dollars)
  • Table 2-13: Share of U.S. Mass-Market Sales of Breakfast Foods by Category, 2000 vs. 2004 (percent)
  • The Breakfast Big Three: Cold Cereal, Eggs, Bacon
  • Yogurt Drinks, Egg Substitutes, Breakfast Bars Pace Growth
  • Table 2-14: Share of U.S. Mass-Market Sales of Breakfast Foods by Key Segment, 2000 vs. 2004 (percent)
• Table 2-15: Growth of U.S. Mass-Market Sales of Breakfast Foods by Segment, 2000 vs. 2004 (in millions of dollars)
• Factors to Market Growth
  • Enlisting Breakfast in Fight Against Overweight
    • Research Shows Cereal Helps Maintain Healthy Weight
    • Carbohydrates and Weight
    • Cereal Marketers Seizing Opportunity
  • Bigger Core Constituency for Cereal, Breakfast Bars?
  • Cereality the Next Starbucks?
  • Eggs Ride Low-Carb Trend
    • Low-Carbs Future Is Critical Question
    • Too Soon to Count Low-Carb Out?
  • Convenience Factor Still Gaining Strength
• Projected Market Growth
  • Market to Surpass $28 Billion in 2009
  • "Other Breakfast Foods" Category to Enjoy Greatest Growth
  • Table 2-16: Projected U.S. Retail Sales of Breakfast Foods, 2004-2009 (in millions of dollars)
  • Table 2-17: Projected U.S. Retail Sales of Cereal and Breakfast Bars, 2004-2009 (in millions of dollars)
  • Table 2-18: Projected U.S. Retail Sales of Breakfast Meats, 2004-2009 (in millions of dollars)
  • Table 2-19: Projected U.S. Retail Sales of Other Breakfast Foods and Beverages, 2004-2009 (in millions of dollars)
  • Table 2-20: Projected U.S. Retail Sales of Eggs and Egg Substitutes, 2004-2009 (in millions of dollars)
  • Table 2-21: Projected U.S. Retail Sales of Breakfast Breads, 2004-2009 (in millions of dollars)
  • Yogurt Drinks, Egg Substitutes to Pace Growth at Mass
  • Table 2-22: Projected U.S. Mass-Market Sales of Yogurt Drinks, 2004-2009 (in millions of dollars)
  • Table 2-23: Projected U.S. Mass-Market Sales of Refrigerated Egg Substitutes, 2004-2009 (in millions of dollars)
  • Table 2-24: Projected U.S. Mass-Market Sales of Frozen Sausage, 2004-2009 (in millions of dollars)
  • Table 2-25: Projected U.S. Mass-Market Sales of Frozen Other Breakfast Food, 2004-2009 (in millions of dollars)
  • Table 2-26: Projected U.S. Mass-Market Sales of Breakfast Bars, 2004-2009 (in millions of dollars)
  • Table 2-27: Projected U.S. Mass-Market Sales of Refrigerated Fresh Eggs, 2004-2009 (in millions of dollars)
  • Table 2-28: Projected U.S. Mass-Market Sales of Refrigerated Bacon, 2004-2009 (in millions of dollars)

Chapter 3: The Marketers

• Marketer Overview
• Licensing an Important Market Component
• The Big Get Bigger
• Strong Competition from Private Label
• Table 3-1: Selected U.S. Marketers of Breakfast Foods
• Marketer and Brand Shares
  • Methodology for Market Share Estimates
  • An Unusually Competitive Market
  • Top Four Dominate Cereal But Losing Share
  • Other Leading Marketers Show Better Results
  • Pinnacle Joins Rankings Via Acquisition
  • Figure 3-1: Top Breakfast Food Marketers by 2004 Share of IRI-Tracked Sales (percent)
  • Figure 3-2: Top Breakfast Food Marketers by Gains in IRI-Tracked Sales, 2003 vs. 2004 (percent)
  • Smaller Marketers Gain Share in Cereal/Breakfast Bars
  • The Hottest Cold Cereals
  • Atkins Morning Start Stars in Breakfast Bars
  • Altria/Kraft Leads Dynamic Meats Category
  • ConAgra Leads Frozen Sausage Segment
  • Marketers of Specialty Eggs, Egg Substitutes Make Gains Egglands Best, ConAgra Among Markets Fastest Growing Firms
  • Kellogg Widens Big Lead in Other Breakfast Foods Group Danone Rules Fast-Growing Yogurt Drinks Segment
  • Figure 3-3: IRI-Tracked Sales of Yogurt Drinks, 2000-2004: Dannon vs. Yoplait Nouriche (in millions of dollars)
  • Sara Lee Leads Category in Growth
  • George Weston Leads in Breakfast Breads with Thomas Brand Bagels, English Muffins
  • Entenmanns Little Bites Takes Big Bite of Muffin Segment
  • Table 3-2: Top Marketers of Breakfast Foods by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-3: Cereal and Breakfast Bars Category:
  • Top Marketers by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-4: Breakfast Meats Category:
  • Top Marketers by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-5: Eggs and Egg Substitutes Category:
  • Top Marketers by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-6: Other Breakfast Foods and Beverages Category:
  • Top Marketers by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-7: Breakfast Breads Category: Top Marketers by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-8: Top Marketers of Breakfast Foods by Gains in IRI-Tracked Sales, 2003 vs. 2004 (in millions of dollars)
  • Table 3-9: Top Breakfast Food Items by Gains in IRI-Tracked Sales, 2003 vs. 2004 (in millions of dollars)
  • Table 3-10: Cold Cereal Segment: Top Marketers/Products by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-11: Top Cold Cereals by Gains in IRI-Tracked Sales, 2003 vs. 2004 (in millions of dollars)
  • Table 3-12: Refrigerated Fresh Eggs Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-13: Refrigerated Bacon Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-14: Refrigerated Breakfast Sausage/Ham Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-15: Hot Cereal/Oatmeal Segment: Top Marketers/Products by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-16: Breakfast/Cereal/Snack Bars Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-17: Frozen Other Breakfast Food Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-18: Frozen Sausage Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)
  • Table 3-19: Refrigerated Egg Substitutes Segment: Top Marketers/Brands by IRI-Tracked Sales and Shares, 2003 vs. 2004 (in millions of dollars)

Chapter 4: Competitor Profiles

• Competitor Profile: Altria Group/Kraft Foods, Inc.
  • Overview
  • Slimming Down
  • Will Oscar Mayer Be Next to Go?
  • Post Cereals on the Block?
  • Acquires Back to Nature Organic Brand
  • Honing in on Health
• Competitor Profile: Atkins Nutritionals, Inc.
  • Overview
  • Glut of Other Low-Carb Entries Hurts Sales
  • Atkins Hires Turnaround Firm
  • Using Newspaper Inserts to Revive Sales
  • Countering with "Net Atkins Count"
• Competitor Profile: Bob Evans Farms, Inc.
  • Overview
  • Sausage a Basic Food Product
  • Catering to Convenience
• Competitor Profile: ConAgra Foods, Inc.
  • Overview
  • From Commodity to Branded
  • Seeking a Higher Profile
  • Enter Ultragrain Whole Wheat White Flour
• Competitor Profile: General Mills, Inc.
  • Overview
  • Trimming the Portfolio
  • Switching to Healthier Whole Grains
  • Spending Splurge for Reduced-Sugar Kids Cereals
  • Introduces Free Weight-Loss Program
• Competitor Profile: George Weston Limited
  • Overview
  • Weston Gains Ranking Through Acquisition
  • Weston Partners with Atkins
• Competitor Profile: Hormel Foods Corp.
  • Overview
  • Hormel Acquires Clougherty Packing
  • Spam Tie-in with Monty Python Musical
  • Internet Promotions Build Brand Awareness
• Competitor Profile: Kellogg Co.
  • Overview
  • Kellogg Bucks the Odds
  • Special K Is Kelloggs Fastest-Growing Cereal Brand
  • Kashi Organic Cereals Enjoy Rising Sales
  • Eggo Brand Caters to Health, Convenience Trends
• Competitor Profile: PepsiCo, Inc./Quaker Oats Co.
  • Overview
  • Slow Growth for Breakfast Foods Unit
  • Smart Spot Symbol Identifies Healthier Products
  • Investing in Cereal Cafes and Active Lifestyles
• Competitor Profile: Pinnacle Foods Group, Inc.
  • Overview
  • Revitalizing the Lenders Brand
  • Aunt Jemima Brand: "Tremendous Opportunity"
• Competitor Profile: Sara Lee Corp.
  • Overview
  • Meats Segment Is Companys Healthiest
  • Focus on Brands with Greatest Growth Potential
  • Increases Marketing Outlays
  • Breads Move to Whole Grain
  • TV and Print Campaign for Breads

Chapter 5: Marketing and New Product Trends

• Advertising Trends
  • Leaders in Advertising Spending
  • Cold Cereal Drives Outlay
    • General Mills, Kellogg: Neck and Neck and Far Out Front
    • More Ad Support for Healthier and Adult Cereals
    • "Instant" Varieties Get Nod in Hot Cereal
  • Advertising Positioning
    • Bagels: Lower-Calorie, Heart-Healthy
    • Focus on Controlling Weight
    • Sugar Free Syrup with a History
    • Focus on Fiber, Whole Grains, Aging Gracefully
    • Jimmy Dean: Getting Real
    • Kid-Targeted Cereal Ads Use Stories with Web Tie-ins
• New Product Trends
  • Cereal Introductions Remain at High Level
  • Nutritional Value Gains as Cereal Selling Point
    • Snack Bars: "Single Serving" Is Top Selling Point
    • Meat: Convenience, Freshness Rule
    • New Dairycase Foods Get Natural-Related Tags
    • Convenience Counts in Meals & Entrees
    • Product Quality Is Focus with Sweet Toppings, Mixes
    • Milk & Yogurt Drinks: Convenience and Nutrition
    • Bakery Products: Convenience and Weight Control
  • Table 5-1: Cereal Selling Points by Package Tags, 2000-2004
  • Table 5-2: Snack Bar Selling Points by Package Tags, 2000-2004
  • Table 5-3: Meat Product Selling Points by Package Tags, 2000-2004
  • Table 5-4: Dairycase Foods Selling Points by Package Tags, 2000-2004
  • Table 5-5: Meals & Entrees Selling Points by Package Tags, 2000-2004
  • Table 5-6: Sweet Topping Selling Points by Package Tags, 2000-2004
  • Table 5-7: Mixes, Other Baking & Non-Baking: Selling Points by Package Tags, 2000-2004
  • Table 5-8: Milk, Non-Dairy Milk, & Yogurt Drinks Selling Points by Package Tags, 2000-2004
  • Table 5-9: Pastry & Baked Products Selling Points by Package Tags, 2000-2004
  • "Better-for-You" Is Overriding Trend
  • Getting Real with Fruit
  • Organic Varieties Gain Staple Status
  • Heart-Healthy Harvest
  • Breakfast Foods as Energy Source
  • Making Proven Products Healthier
  • Breakfast Staples Get Healthier
  • Specialty Eggs Ride Healthfulness Wave
    • More Choices of Egg Substitutes
  • The Move to Whole Grain
  • Responding to Low-Carb
    • Low-Carb Cereals and Breakfast Bars
    • Cutting Carbs in Baking Mixes, Bread Items
  • Bread Items Step Up Nutritional Content
  • Convenience Still a Major Driver
    • Microwave-Ready Breakfast Sandwiches to Go
    • Toaster Options Grow
    • Cereal Opts for Grab-and-Go
    • Introductions Nourish Growth of Yogurt Drinks
  • Private-Label Intros Are On Trend
  • Table 5-10: Cereal & Breakfast Bars: Selected New Product Introductions, 2004
  • Table 5-11: Breakfast Meats: Selected New Product Introductions, 2004
  • Table 5-12: Eggs & Egg Substitutes: Selected New Product Introductions, 2004
  • Table 5-13: Other Breakfast Foods and Beverages: Selected New Product Introductions, 2004
  • Table 5-14: Breakfast Breads and Mixes: Selected New Product Introductions, 2004

Chapter 6: The Consumer

• Consumer Overview
  • Note on Simmons Market Research Bureau Consumer Data
  • 18.5% of Adults Consider Breakfast Most Important Meal
  • Senior Skew to Breakfast Fans
  • Hot vs. Cold
  • Product Usage and Diet Attitudes
  • Figure 6-1: Usage Rates for Selected Breakfast Foods, 2004 (U.S. adults)
  • Table 6-1: Top Demographics by Index for Agreement with Statement: Breakfast Is More Important Than Lunch or Dinner, 2004 (U.S. adults)
  • Table 6-2: Demographic Overview for Agreement with Statement: Breakfast Is More Important Than Lunch or Dinner, 2004 (U.S. adults)
  • Table 6-3: Demographic Indices by Meal-Time Attitudes, 2004 (U.S. adults)
  • Table 6-4: Breakfast Food Usage Rates: By Product Type and Consumption Level, 2004 (U.S. adults)
  • Table 6-5: Usage Indices by Product Type and Consumption Level Among Those Who Consider Breakfast More Important Than Lunch or Dinner, 2004 (U.S. adults)
  • Table 6-6a: Breakfast Food Usage Indices: By Diet and Health-Related Attitudes, 2004 (U.S. adults)
  • Table 6-6b: Breakfast Food Usage Indices: By Diet and Health-Related Attitudes, 2004 (U.S. adults)
• Brand Patterns: Adults vs. Teens vs. Kids
  • Cereal Products: Tween Spirit and Treat Brands
  • Steadier Shares in Breakfast Meats
  • Pancake and Toaster Pastry Skews
  • Breakfast Breads: Growing Up in Taste
  • Table 6-7: Adult Brand Usage: Cereal and Breakfast Bars, 2004 (U.S. adults)
  • Table 6-8: Adult Brand Usage Indices by Presence of Children in Household: Cereal and Breakfast Bars, 2004 (U.S. adults)
  • Table 6-9: Adult Brand Usage: Breakfast Meats, 2004 (U.S. adults)
  • Table 6-10: Adult Brand Usage Indices by Presence of Children in Household: Breakfast Meats, 2004 (U.S. adults)
  • Table 6-11: Adult Brand Usage: Other Breakfast Foods, 2004 (U.S. adults)
  • Table 6-12: Adult Brand Usage Indices by Presence of Children in Household: Other Breakfast Foods, 2004 (U.S. adults)
  • Table 6-13: Adult Brand Usage: Breakfast Breads, 2004 (U.S. adults)
  • Table 6-14: Adult Brand Usage Indices by Presence of Children in Household: Breakfast Breads, 2004 (U.S. adults)
  • Table 6-15: Teen Brand Usage: Cereal and Breakfast Bars, 2004 (U.S. children age 12-17)
  • Table 6-16: Teen Brand Usage Indices by Age Bracket: Cereal and Breakfast Bars, 2004 (U.S. children age 12-17)
  • Table 6-17: Teen Brand Usage: Breakfast Meats, 2004 (U.S. children age 12-17)
  • Table 6-18: Teen Brand Usage: Breakfast Meats, 2004 (U.S. children age 6-11)
  • Table 6-19: Teen Brand Usage: Other Breakfast Foods, 2004 (U.S. children age 12-17)
  • Table 6-20: Teen Brand Usage Indices by Age Bracket: Other Breakfast Foods, 2004 (U.S. children age 12-17)
  • Table 6-21: Teen Brand Usage: Breakfast Breads, 2004 (U.S. children age 12-17)
  • Table 6-22: Teen Brand Usage Indices by Age Bracket: Breakfast Breads, 2004 (U.S. children age 12-17)
  • Table 6-23: Kids Brand Favorites: Cereal and Breakfast Bars, 2004 (U.S. children age 6-11)
  • Table 6-24: Kids Brand Favorites by Age Bracket: Cereal and Breakfast Bars, 2004 (U.S. children age 6-11)
  • Table 6-25: Kids Brand Usage: Breakfast Meats, 2004 (U.S. children age 6-11)
  • Table 6-26: Kids Brand Usage: Breakfast Meats, 2004 (U.S. children age 6-11)
  • Table 6-27: Kids Brand Usage: Other Breakfast Foods, 2004 (U.S. children age 6-11)
  • Table 6-28: Kids Brand Usage Indices by Age Bracket: Other Breakfast Foods, 2004 (U.S. children age 6-11)
  • Table 6-29: Kids Brand Usage: Breakfast Breads, 2004 (U.S. children age 6-11)
  • Table 6-30: Kids Brand Usage Indices by Age Bracket: Breakfast Breads, 2004 (U.S. children age 6-11)

Chapter 7: Looking Ahead

• Trends and Opportunities
  • As Cereal Goes, So Goes the Market
  • Cereal Marketers Can Use Weight Issue to Advantage
  • Marketers Creating Their Own Diets
  • Organic and Health Food Cereals Outperform Market
  • Better Nutrition Through Labeling
  • The Move to Whole Grains
  • Eggs: Big Opportunities in Small Segments
  • Convenience Rivals Nutrition in Importance
  • Low-Carb Diets Remain a Factor
  • Bread Goes on the Offensive
  • Quick-Service Restaurants Bullish on Breakfast

Appendix: Addresses of Selected Marketers