Kellogg puts snack in cereal section

Kellogg Canada is trying to cut through the clutter of the saturated nutritious portable foods market by placing its new whole-grain snack bar in the cereal section of the supermarket.Kellogg's Nutri-Grain Cereal Bars, launched in Canada at the end of June,...

Kellogg Canada is trying to cut through the clutter of the saturated nutritious portable foods market by placing its new whole-grain snack bar in the cereal section of the supermarket.

Kellogg’s Nutri-Grain Cereal Bars, launched in Canada at the end of June, are being marketed as an on-the-go breakfast bar.

The grain-based bars with fruit filling strongly resemble other snack foods such as granola bars in content and packaging.

But Kellogg is appealing to the trade to move the bars away from similar snack foods and into the middle of the breakfast cereal section, to support the breakfast food branding of the product.

The positioning of the product is different than granola bars, or other portable grain-based snack foods, says Christine Lowry, senior manager, nutrition and consumer communication, for Kellogg Canada.

‘It’s being marketed primarily as a breakfast you can take with you – that’s not the position of granola bars,’ Lowry says.

Today’s granola bar industry is not in an enviable position.

This segment of the snack category is being threatened this year by a host of new products such as low-fat cookies, crackers and chocolate bars that advertise themselves as nutritious, portable snacks.

Although the $120-million nutritious portable foods category grew 14% last year, granola bar sales were down 12 percentage points from sales this time last year, according to Nielsen Marketing Research statistics.

Where Nutri-Grain will be placed is up to individual tradespeople, and it is too soon to tell whether Kellogg’s efforts at positioning it in the cereal section will prove successful, says Max Roytenberg, vice-president of member services and public affairs for the Canadian Council of Grocery Distributors.

A relatively small box of cereal bars in a section filled with big boxes may not get much attention, says Mark Potgieter, director of marketing for Quaker Oats of Canada, the Peterborough, Ont.-based food products manufacturer that has the biggest share of the granola bar market.

And, Potgieter says if Nutri-Grain bars, selling at $3.89 a box, were placed in the granola bar section, they may find it hard to compete with other snack bars typically priced more cheaply.

Leo Burnett handled the creative for the Nutri-Grain bar in Canada.

Lowry says the positioning of the product is the same in Canada and the u.s., so the campaigns are somewhat similiar.

A tv spot focussing on the breakfast-on-the-go idea was reshot in Canada for Canadian release.

Sampling, mass couponing and in-store displays support the product.