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General Mills launches Quik chocolate cereal: Finds Canadian market ‘underdeveloped’

General Mills Canada is hoping the Nestle Quik bunny will convince Canadian consumers to hop over to the chocolate breakfast cereal segment.

The Etobicoke, Ont.-based company is building on the equity of Nestle’s well-known chocolate powder with the launch of Nestle Quik Cereal in Canada.

‘We think Canada is very undeveloped in the chocolate cereal segment,’ says Christi Strauss, newly appointed president of General Mills. The chocolate segment of the breakfast cereal category in Canada is worth only 0.7% in volume share, compared to 3.1% in the u.s., says Strauss.

This is not the first time General Mills and Nestle have collaborated on a cereal based on the chocolate powder drink, although the previous alliance, called Cereal Partners Worldwide, was between the companies’ u.s. divisions.

It is through that partnership that consumers in Europe have been able to buy a cereal called Nesquik, says Strauss, adding the entry is proving to be very popular.

As a rule, chocolate cereals are considerably more popular overseas, says Strauss. In Spain, for example, they account for 12.5% of the category in volume while, in Portugal, the figure is close to 25%, she says. Canadian tastes are more European than American, says Strauss, so there’s definitely room for growth in the category here.

General Mills Canada already has a few chocolate cereals on the market, such as Reese’s Peanut Butter Puffs, Count Chocula and the company’s first chocolate cereal, Cocoa Puffs.

The latter two brands carry little to no advertising whatsoever. As well, Cocoa Puffs is not even available outside of Ontario, according to Strauss. The Reese’s brand still carries advertising, mostly in the u.s. where the partnership between General Mills and Hershey, maker of Reese Peanut Butter Cups, was struck, says a General Mills spokesperson.

The Quik deal is specific to Canada; there is no Quik cereal in the u.s.

Because the Quik brand carries a lot of weight, says Strauss, the company plans to put a lot of effort into the launch.

There is both a French and an English 30-sec. spot – created by FCB Canada and featuring the Quik rabbit – which will air in late fall, as well as plans for sampling and couponing, she says.

The cereal will be cross-promoted to Nestle Quik buyers using in-store marketing devices such as shelf danglers, says Strauss.

‘This will be the [chocolate] cereal accepted by moms.’