The Breakfast Cereal Industry Is The Most Popular Forms Of Breakfast Essay

1071 WordsDec 12, 20165 Pages
Breakfast cereal is one of the most popular forms of breakfast in the United States. Just about all of us have had and enjoyed a bowl of cereal in the morning. The breakfast cereal industry is very profitable and has been around a long time. The NAICS code for this topic is 311320 and the SIC code is 2043 Cereal Breakfast Foods, The SIC gives a description of establishments as primarily engaged in manufacturing cereal breakfast foods and related preparations, except breakfast bars. Cereal breakfast foods include: coffee substitutes made grain, hulled corn, farina, granola (except bars and clusters), hominy grits, infant cereal foods, oatmeal, rolled oats, rice breakfast foods and wheat flakes. History The ready-to-eat (RTE) breakfast cereal industry has been very successful for decades, achieving high returns and growth. By 1994, the US market alone has grown to $8 billion in sales, and 2.82 billion pounds in volume and In 2007, the market value for the industry was $11.2 billion. Despite its high profitability, the industry has grown more concentrated over the years with very few and mostly unsuccessful entry attempts. The breakfast cereal was first invented in 1863 by Dr. James Caleb Jackson who made the granola. The granola was a hard wheat that had to soak overnight before it could be eaten. Later the popular Corn Flakes was invented. However, by 1994, the industry started to face new challenges, namely slower demand and gain in market share by private labels.

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