Company to create new campaign and boost ad spending by 50 percent.
NEW YORK - While oatmeal has been resonating with consumers outside the home ?" "it's been a big win for Starbucks and Jamba Juice," according to Advertising Age, and McDonald's is planning its own oatmeal launch early next year ?" Quaker is planning to revamp its oatmeal line with the intent of stimulating at-home oatmeal consumption.
Quaker's CMO Kirsten Lynch acknowledged that consumption of oatmeal outside the home is on the rise, with an inverse decrease inside the home. According to SymphonyIRI Group, oatmeal sales dropped 2 percent to $872 million in 2009 and are down five percent year-to-date in supermarkets, drugstores, and mass-market retailers (excluding Walmart). And Quaker's hot cereals and oatmeal are also down. Last year, its sales dropped eight percent, and year-to-date sales are down six percent.
However, Lynch said she doesn't view Starbucks, Jamba Juice or McDonald's as competitors. "Quaker is excited that these companies are adding healthy options, such as oatmeal, to their breakfast menus," she said. "Our research tells us that out-of-home oatmeal consumption is growing, so this is great for the category. This type of trend usually translates to retail sales within 12 months."
Trying to leverage that interest, Quaker's "Amazing Mornings" campaign will include an ad spending commitment that's up 50 percent in the second half (Last year, Quaker spent $13 million on measured media promoting its hot cereal and instant oatmeal in the second half).
Quaker's instant-oatmeal products are all being upgraded to a larger, whole-grain oat, with sugar slashed by 25 percent. The company is adding two new products: Mix-up Creations Instant Oatmeal for kids; and Hearty Medleys Instant Multigrain Hot Cereal, featuring real nuts and fruits.
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