Kellogg launches wholegrain cereal for growing niche market

Related tags Cereal

A new all wholegrain cereal range was launched in the UK last week
by cereal giant Kellogg, targeting the increasing number of
consumers turning towards healthier wholegrain products. Yet a
Mintel analyst says it is unlikely to be a mainstream bestseller,
writes Lorraine Heller.

The Kashi range, which the firm claims is already "market leading"​ in the US, is made from seven different wholegrains- wheat, brown rice, oats, barley, triticale, rye and buckwheat.

"Wholegrains are definitely important, they are definitely on the agenda and they are definitely going to get bigger,"​ said Mintel analyst David Jago.

An increasing number of studies to identify the benefits of wholegrains are underway, and the US Food and Drug Administration (FDA) has recently integrated wholegrains into the nation's food pyramid.

"The industry realises there is an opportunity here and it's using it,"​ said Jago.

However, he does not believe that the Kellogg Kashi brand will be the best selling product in the Kellogg line-up.

"Kashi is too overtly healthy, too heavy duty. Consumers don't only want health in food, it's all a question of compromise. The Kashi products will probably do well, but they're not a mainstream bestseller,"​ he told

Jago added that Nestlé and Warburtons are following a successful strategy in the marketing of their wholegrain products.

"Nestlé promotes its Shreddies and Shredded Wheat cereals as keeping away hunger for longer, while Warburtons advertises its All In One wholemeal white bread as providing sustained energy. These are strong consumer incentives for buying a product."

Kellogg, which reported a 4 per cent increase in breakfast cereal sales in its first quarter this year, claims not to be cashing in on the wholegrain trend.

"We are simply increasing our range of products and giving people the opportunity to make an informed decision as to what they want to eat,"​ said a company spokesperson.

Recent research has demonstrated how wholegrain foods can have a protective effect against heart disease, a leading cause of death in the world, killing nearly 17 million people annually.

The research also claims that consuming wholegrain foods can help reduce the risk of stroke by up to 40 per cent.

Last year, researchers in the US revealed how wholegrain bread and cereals could reduce the risk of developing the increasingly common health condition of type 2 diabetes, by reducing chances of developing high blood pressure, poor blood sugar control, low HDL "good" cholesterol and high blood fats.

Further studies claim that eating wholegrain foods keeps weight down, as components within wholegrains contribute to favourable metabolic alterations that may reduce long-term weight gain

Kellogg, which holds an estimated share of 40 per cent of the £1.12bn (€1.63bn) UK cereal market, plans the UK launch of further products in the Kashi range later this year, including crunch, muesli and bars.

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