Can Drinkable Breakfasts Save the Cereal Industry?

In order to give a measure of credibility to their new products, both companies noted separately, that a similar drink, Sanitarium Health’s “Up & Go,” has down well in Australia, grabbing between 10 percent and 20 percent of the region’s cereal market. In general, the strategy of redesigning meals into nutritional beverages has gained popularity throughout industry. Even PepsiCo (NYSE:PEP) has taken a stab at drinkable meals in an attempt to capture the interest of people who are increasingly looking for portable meals to eat on the way to work, school, or any type of engagement.

Currently, PepsiCo offers a powdered-cereal drink in China and is testing a Quaker oatmeal drink in Brazil. While the PepsiCo declined to say whether it has any similar products slated for release in the United States, the AP sees it as a likely possibility, given the company has a strategy of “lifting and shifting” products from various locations around the world to new markets. In addition, PepsiCo Chief Executive Officer Indra Nooyi has made efforts to “drinkify” snacks. The snack manufacturer’s Naked juices have done well so far, helped along by the appealing doses of additional nutrients that fortify the beverages.

As Americans have become increasingly concerned with the sugar and caloric content of snack foods, an awareness that has been strengthened from the growing obesity epidemic, companies like PepsiCo, Kellogg, and General Mills have been forced to rethink and reformulate their products.

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