Trapped at No. But Post is striking out on its own, charting a fresh course as a stand alone company with new marketing and retail plans with the aim of breaking through in the competitive $6.4 billion ready to eat cereal category.
The new era started earlier this month when Post called Post Holdings completed its spinoff from parent Ralcorp, which had acquired the Post brands from Kraft Foods four years ago. Both companies struggled to grow the brands, which include Honey Bunches of Oats, Grape Nuts, Shredded Wheat and Pebbles. Even with its massive marketing machine, Kraft gave up on competing with Kellogg and Big G, divesting its cereal business in the face of pressure from activist investors.
So how can a stand alone Post do any better? The company’s new management says the brands will benefit from more focus and is planning a multipronged attack to correct what it says Ralcorp did wrong. Plans include more aggressive marketing and promotional spending, increasing social and digital efforts, beefing up sales staffing and putting more emphasis on PR, according to regulatory filings.cheap nfl jerseys http://www.cheapnfljerseyschinadiscount.com At the same time Post has expanded its agency roster, hiring independent Upshot, Chicago, for its biggest brand, Honey Bunches of Oats. The cereal is the second largest brand in the category behind General Mills’ Honey Nut Cheerios, but sales volume slipped 8.9% in the year ending Jan. 22 , according to SymphonyIRI.
But Post has the wind at its back in a few respects. For one, the company has some of the most iconic brands in the category, which have been propelled by storied advertising over the years. Well remembered spots include naturalist Euell Gibbons pitching Grape Nuts in the 1970s, Fred Flintstone putting his weight behind Fruity Pebbles, and Raisin Bran ads hyping the fact that they were not sugared unlike Kellogg ’s version. Post made the first batch of Postum, a cereal beverage, in a barn in Battle Creek, Mich. Grape Nuts was launched in 1897 as one of the first ready to eat cereals. The Postum Co. later evolved into General Foods, which hatched brands across multiple categories before merging with Kraft in 1989.
For Great Grains, Post is ditching celebrity chef Curtis Stone as its ad spokesperson, moving to a “user as hero approach” in which a female consumer will tout the cereal’s “minimally processed” formula, said Kevin Driscoll, Womenkind’s managing director for client services. The tagline is “Great Grains. Nutrition you can see.” New ads for Honey Bunches of Oats will portray brand employees riding yellow bikes in a suburban neighborhood and spreading the word about the brand’s new “Fruit Blends” line extension, according to Upshot.
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