You are here
Both companies have struggled to grow cereal sales in the United States, and are now planning to roll out breakfast drinks, according to a report by the Associated Press.
The companies' announcements were made during an earnings conference call Wednesday. Kellogg’s CEO John Bryant said that "Breakfast To Go," a milk-based drink that will be rolled out nationally this year, is one way the company is planning to redefine cereal.
Kellogg's already offers a Special K Protein shake, but the drink targets people who are looking to control their weight.
Meanwhile, General Mills said it is testing a dairy-based breakfast shake called "BFast" that has whole grains and the nutrition of a bowl of cereal and milk, including fiber, protein, vitamins and whole grains, the news outlet reported. The drink is currently being sold in the Northeast.
Kellogg's and General Mills are not alone in their ideas to turn drinks into portable, convenient meals. In separate remarks, both companies noted the success of a similar drink, "Up & Go" by Sanitarium Health and Wellbeing Co., that has seen success in Australia.
As CSNews Online previously reported, PepsiCo Inc. will also try a new strategy of turning snack products into drinks.
The company makes Quaker oatmeal and recently entered the dairy business. It currently offers a Quaker cereal power drink in China and began testing a Quaker oatmeal drink Brazil.
"A way to grow the beverage business is to take foods and drinkify them," Indra Nooyi, CEO of PepsiCo, said at an industry conference in December.
PepsiCo, which has been losing market share to rivals, continues to work to boost its beverage business as part of a corporate "reset" that Nooyi unveiled nearly a year ago.
However, a spokesman for the company declined to comment to the AP on whether any similar breakfast drink products are planned for the U.S. Pepsi already produces Naked juices, which are fortified with nutrients and are considered to be a staple in that space.