Breakfast cereals: the extreme food industry

Article Abstract:

The cereals industry has flourished since the 1940s due to the high demand for the products and production has settled in the hands of very few producers, less than 35 companies in its first 50 years. It has been regarded as having to operate in extreme conditions, such as its concentrated markets and the extremely low cost of production. Prices of cereals are very high, considering the ratio of revenues allotted for the purchase of materials. Less than 9% of total revenues are used to purchase raw materials.

Analysis, Finance, Cost (Economics), Costs (Economics)

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Consumers in a box: a consumer report on cereal

Article Abstract:

A US congressional report revealed four major branded cereal companies that dominate the US breakfast cereal industry use their position to dictate cereal product prices. Due to the ability of these companies to launch national promotional campaigns, sales of branded cereals have skyrocketed despite their uncompetitive prices. Generic or non-brand cereals very little popularity among consumers. Coupons from major dailies sponsored by cereal giants have very little effect on overall sales.

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Consumers still in a box: the high price of breakfast cereal

Article Abstract:

Cereal food companies received negative publicity after two Congressmen released their report on cereal products overpricing in 1995. Though cereal prices did not necessarily go down after the report was released, their increase tapered off for the meantime. This greatly benefitted consumers. Instead of lowering corporate expenditure on advertisements and campaigns, companies saved money and profits by reducing promotions, coupons and special offers.

Legislative Bodies, Congressional Research Service, Reports, Price control, Price regulations, Governmental investigations, Government investigations

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