PepsiCo takes Quaker into breakfast snack bars market

By Vince Bamford contact

- Last updated on GMT

Quaker Breakfast Flats are available in three flavors
Quaker Breakfast Flats are available in three flavors

Related tags: Nut, Breakfast cereal, Kellogg company

PepsiCo has extended its Quaker brand snacks bars into the US breakfast market with Quaker Breakfast Flats.

The manufacturer has launched the bars in boxes containing five packs of three crispy bars in a pull-out tray. They are available in three flavors - Cranberry Almond, Banana Honey Nut and Golden Raisin Cinnamon - with a suggested retail price of $3.49. 

PepsiCo is looking to tap demand for healthier snacks containing natural ingredients “you can see​”:  the bars contain oats, pieces of fruit, nuts, flax and sunflower seeds, and have no artificial flavors or added colors. Each three-bar serving has less than 200 calories and seven grams of total fat, 18 g of whole grains, and offers “a good source of fiber​”, said the manufacturer.

The brand takes Quaker into what has recently been a sluggish category, with IRI data showing overall sales of breakfast bars static at $1.3bn on unit sales up less than one percentage point [52w/e 27 December 2016]. (See table below.)

Weak category performance

Performance has been eroded by falling sales from Kellogg’s Special K Pastry Crisps, although ranges including Kellogg’s Rice Krispies Treats, Nature Valley and Larabar have all grown in value.

Quaker is targeting the product at female consumers, and said “every woman needs a convenient snack to help fuel her​”.

"As a working mom, I know how hectic mornings can be​," said Quaker Foods North America senior marketing director Lesley Butler. "At Quaker, we know breakfast, and continue to innovate to meet evolving consumer lifestyles. Quaker Breakfast Flats were designed to address consumer demand for convenient, nutritious snack options that help satisfy hunger​."

Jamie Chung promoting new bars

Quaker has partnered with actress and reality television personality Jamie Chung to promote the new products.

Last month, PepsiCo reported full-year net revenue from its Quaker Foods North America division, was down 1% to $2.5bn, with profit down 10% to $560m. The company said the division had been hit by impairment charges related to a dairy joint venture, operating cost inflation, higher advertising and marketing expense and the lapping of a gain associated with the divestiture of a cereal business in the prior year.

US BREAKFAST BAR SALES

Year on year performance. Source: IRI 52w/e 27 December 2015 (Supermarkets, drugstores, mass-market retailers, gas/c-stores, military commissaries and select club and dollar retail chains)Note: data can be re-ordered by clicking on column heading

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