Would you pay $13 for a box of cereal?
General Mills said on Tuesday that the food company plans to bolster sales by offering a ready-to-eat breakfast meal complete with real maple berries, dried cherries and almonds. The catch: A box is priced at more than double the cost of an average box of cereal in the U.S.
"We're innovating in new product forms that command premium price points, including our new Morning Summit cereal, which has almonds as a first ingredient and sells for $13 a box," the company's CEO Jeff Harmening told investors in a conference on Tuesday.
The cereal aimed at health-conscious consumers also contains organic coconut oil and pumpkin seeds. For sweetness, General Mills added dried sugary cranberries and dried cherries to the blend.
The sales price is part of a strategy to offer "compelling innovation" and "health benefits" that give consumers a reason to walk down the cereal aisle at grocery stores, Harmening said.
The average price per box of cereal in the U.S. is around $3.27, the most recent figures suggest. Walmart is selling a 38 oz. box of Morning Summit for $26.27, and on Amazon, the cereal will run Prime members $24.97.
Millennials have been accused in the past of killing off breakfast cereals as they shifted toward eating on the go and focusing on nutrition. In 2015, almost 40% of the millennials surveyed by Mintel said cereal was an inconvenient breakfast option because they had to clean up after eating it.
Harmening said that the cereal industry saw sales stabilize in 2019 as more people had kids and ate breakfast at home.
To revive cereal fortunes, General Mills is also doubling down on sugary breakfast cereals. The Minneapolis, Minn.-based company launched Hershey's Kisses-flavored and Trix Trolls-inspired cereals in recent months.
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