Statement on the breakfast cereals industry

Article Abstract:

Cornell University professor Kahn discusses his involvement in the anti-trust case hearings against Kraft General Foods on the acquisition of its Post Cereals Division by Nabisco Cereals Division of R.J. Reynolds. Kahn served as a court-appointed advisor to the US District Court for the duration of the case. He believes that the merger would not necessarily weaken price competitions. However, the merger would become more effective in competing for market share since its heavy distribution of coupons and specials as a combined entity can further enhance price competition.

Grain Mill Products, Preserved Fruits and Vegetables, Canned Foods, Fruit and Vegetable Canning, Pickling, and Drying, Grain and Oilseed Milling, Cases, Mergers, acquisitions and divestments, Food industry, RJR Nabisco Inc., RJR, Grain products, Kraft Foods Inc., Kraft General Foods Inc. Post Div.

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Fact sheet: facts versus myths about breakfast cereal pricing and promotion

Article Abstract:

The Grocery Manufacturers of America is the largest association of food, beverage and consumer product companies in the world. The association has published a fact sheet that responds to the allegations of Congressmen Samuel Gejdenson and Charles Schumer that breakfast cereals provide no value to consumers. According to the association, not only is the allegation false, but cereal prices are actually lower than the current rate of inflation. Cereal manufacturers are also very competitive and that coupons greatly reduce the prices that consumers pay.

Prices and rates, Statistics, Grocery Manufacturers of America

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