Why did the cockerel cross the road? We’re not sure, but Kellogg’s’ latest marketing push is no joke.
The cereal giant has splashed £12m on a bold campaign, ‘See you in the morning’, which features a modern reinvention of its 66-year-old mascot Cornelius.
The new-look giant, green cockerel – which struts the city streets to Jurassic 5’s 1998 hip-hop track Jayou – was created by Framestore, the animation studio behind the Paddington and Harry Potter films. His flashy makeover is said to demonstrate “Kellogg’s dedication to future innovation and investment in cereal”, while it is hoped that his breakfast-fuelled swagger and fresh energy will appeal to younger consumers.
The multi-brand campaign – which will run across TV, digital, social media, out-of-home, and in stores in the UK in January – makes it clear Kellogg’s will be pushing hard to revive its cereal volumes in 2025.
Cereal struggles
As reported in The Grocer’s Top Products report, Kellogg’s’ top 10 bestselling cereal brands are in decline, having sold 6.2 million fewer kilos through the tills combined [NIQ 52 w/e 7 September 2024]. Only Coco Pops (+4.8%) and Frosties (+6.8%) saw value growth – and their £4.5m gain was solely attributable to higher prices.
This comes after Kellogg’s combined UK operations fell to a loss in 2023, as revealed by accounts recently filed at Companies House. While Kellogg Marketing & Sales Company (UK)’s pre-tax profit increased from £24.1m to £28.5m in the year ending 31 December 2023, Kellogg Company of Great Britain made a loss of £61m.
So, will a flashy ad campaign be enough to change Kellogg’s’ fortunes?
Not necessarily. Chris Silcock, UK MD of Kellanova (which owns Kellogg’s cereal brands, along with Pringles and Cheez-It), insists it is “just one part of” the strategy, adding he is “confident we will drive growth across numerous areas, including new products, partnerships, in-store activation, out of store and communications”.
For instance, the £12m media spend pales in comparison to the £75m investment in a “state-of-the-art transformation” of Kellogg’s Wrexham cereal factory, announced in October. In addition to increasing capacity, two new “advanced” production lines will enhance the sustainability of cereal manufacturing, using artificial intelligence and machine learning technology to lower energy consumption during the production process.
New packaging lines will be added, and existing production lines upgraded to improve cereal production efficiency at the factory. Kellanova hopes the move will give it increased flexibility, allowing it to quickly introduce new cereal formats and ingredients in future to meet evolving consumer tastes.
Changing tastes
Catering to those changing tastes will be crucial if Kellogg’s is to reverse its fortunes. On the whole, cereal brands are struggling to excite shoppers, with volumes down by 6.5% on average, according to NIQ data [52 w/e 7 September 2024].
Inflationary pressure has played a role in their woes, with a 6.7% increase in average price across cereal brands. “The rising cost of living and economic slowdown have hurt the category’s volume growth,” confirms Prashant Chahal, NIQ customer success senior insight analyst.
Some brands have been mitigating the impact of soaring costs by shrinking packs. Kellogg’s is no stranger to shrinkflation, having shrunk its Corn Flakes packs by as much as 10%, while prices on shelf stayed the same.
But price is just one factor. The growing trend for intermittent fasting – where shoppers delay breakfast or skip it entirely – and more pervasive use of GLP-1 based medications such as Ozempic, which suppress the user’s appetite, could bring further challenges to the cereal category in the years to come.
This uncertainty over the future of breakfast is likely why Kellogg’s has chosen to portray a diverse array of breakfast occasions in its new ad.
While it depicts a traditional family breakfast set-up, we also see a van driver taking a Kellogg’s cereal bar with him for breakfast on-the-go, with a man in scrubs clutching a plastic tub filled with breakfast cereal on his bus commute.
“The increase in hybrid working and weekend habits creeping into weekdays is changing the shape of the breakfast occasion and gives us the opportunity to bring forward a compelling vision, focused not just on attracting new households to the category, but also adding more value for loyal consumers,” says Silcock.
While he is keeping tight-lipped on the details, Silcock is still channeling optimism. With its revamped factory, made-over mascot and new “See you in the morning” brand platform, 2025 looks set to be a very busy year for Kellogg’s indeed.
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