>>Hot and snacking sectors are driving growth… Most sales still come from ready-to-eat… Trend towards eating a healthier breakfast…

Sainsbury cereal buyer
Cereal is a key category for all major multiples as all tend to overtrade against their total grocery packaged share.
The hot and snacking sectors are driving growth in the market, but ready-to-eat still remains the dominant sector. Convenience and health continue to drive the market.
Sainsbury continues to outperform total market growth. Latest 52 weeks ACNielsen data shows we are growing ahead of other multiples by 2.3%.
Our own label ranges are delivering strong value and volume growth. Our areas of growth reflect total market growth drivers in hot cereals, cereal bars, muesli and adult healthy sectors.
Nisa-Today's trading controller
The cereal market is a mature one, known for repertoire purchasing. It is also one that, with the exception of hot varieties, is showing little growth in value.
The problem has been that most sales still come from the ready-to-eat cold breakfast sector, which is growing slower than the market.
Hot cereals are showing massive growth, although they still only account for a small amount of the total market.
The impressive growth in the hot cereals sector has made it important for retailers to stock a year-round range, as these products are no longer eaten just in the colder months.
Steve Wallace
Waitrose grocery buyer
Waitrose has had a strong breakfast cereal sales performance during 2005.
In terms of sales, Waitrose has performed well against the multiples across all sub-categories.
Hot oats has, in line with the total market, performed particularly well in Waitrose in both instant and traditional formats. This is driven by the trend towards consumers eating a healthier breakfast in a convenient format.
In addition to this, Waitrose continues to show good growth in the muesli sector, with a particularly strong performance from our own label range, which we are continuing to develop.
Wendy Myers
Steve Hodson