FMCG Business April-May 2024

RISE & SHINE

Kellogg’s® is aiming to find a sweet-spot between taste and nutrition with the New Zealand launch of Coco Pops® Chocos.

The better-for-you breakfast cereal is already hitting supermarket shelves across the country and offers 25% less sugar compared to Kellogg’s® Coco Pops®.

Kiwi parents can now win in the mornings with this new product – it features 4 health stars and enhanced nutritional benefits, including 25% less sugar, 7 essential vitamins and minerals plus fibre.

The company is hoping the cereal will bust the myth that less sugar equals less taste. In a recent Australian survey examining breakfast habits, 40% of parents surveyed think that when it comes to breakfast food, less sugar means less taste.

To help Kellogg’s® perfect the yummy taste, the new Coco Pops® Chocos was put to the ultimate taste test by the most honest critics: kids! With reactions crowning the cereal “delicious”, “very chocolaty” and “super crunchy”, Coco Pops® Chocos was given the official thumbs up.

The new product is set to be a permanent addition to the company’s stable of breakfast cereals.

The research also reveals what is considered the most important factors for parents when deciding what’s for breakfast; including foods that are tasty (65%), that their kids will actually eat (62%), not too high in sugar (48%), and that they will enjoy too (40%).

Robert Saunders, Marketing Manager, at Kellanova NZ, believes Coco Pops® Chocos will be a big hit with parents and kids alike, being tasty, less sugar and something their kids will actually eat.

“Coco Pops Chocos is a fantastic product we’re delighted to bring to market,” said Rob. “We expect them to have broad appeal as they provide a great better-for-you breakfast cereal that parents can provide to their kids, knowing it features 4 health stars and enhanced nutritional benefits, including 25% less sugar, 7 essential vitamins and minerals plus fibre.”

“Best of all though it passes the taste test amongst some of our fussiest consumers - kids! They are always quick to tell us what they don’t like, fortunately Coco Pops® Chocos received smiles all round and plenty of empty bowls.”

Market leader: Harraways Oats

“Harraways are New Zealand’s market leader in traditional bagged oats with over 39% value market share of the traditional oats’ market segment,” says Peter Cox – Head of Marketing & Product Innovation at Harraway & Sons Limited.

“The Traditional Bagged Oats Market Size (RSV, MAT 24 Dec, 2023) = $24.4 million MAT,” says Cox.

“Harraways has focused on building its range within the valueadded oats segments. In the NPD brought to market, the Harraways’ offering has balanced fortified health benefits, alongside unique taste combinations. Consumers have embraced the new products in these spaces over the last 24 months, with launches including:

• Immunity Boost (added zinc and iron), Blackcurrant Spiced Apple Oats, 850g NET bag

• Less Sugar, Raspberry Coconut Oats, 850g NET bag

• Less Sugar, Strawberry Cream, Quick Serve Oat Sachets, 315g NET box

Cox explains: “Our NPD activity has been successful and has strongly contributed to the overall oats category growth within the collective value-added oat segments. These segments are growing well ahead of total oat category growth. For example, total oats grew 13% in value over the last 24 months, whereas total ‘value added’ oats (incl. bags and sachets) grew 18% over the same period. Harraways’ products have been a strong contributor to this overall segment growth - with Harraways value added oat sku sales growth delivering around 32% of the collective ‘value added segment’ growth over this 24-month period of time.”

To continue the market momentum, Harraways is launching two new products in early 2024:

1. NEW Harraways Fibre Rich, Creamy Original Oat Sachets

• Made in NZ from local and imported ingredients

• 7.4g of fibre per serve, at least 37% more dietary fibre than standard Harraways Rolled Oats. This sku truly delivers extra fibre for a healthy bowel

• Contains no added sugar

• Is free from artificial colours and flavours

• Contains 7x BIG 45g quick cooking serves. Each sachet is kerbside recyclable

• Each box uses 20% less cardboard, compared to other sachet porridges on the market. We don’t believe in asking you to pay for fresh air!

2. NEW Harraways Salted Caramel Oat Sachets

• Made in NZ from local and imported ingredients

• Premium South Island grown oats, flavoured with salted caramel to deliver a luxurious and nutritious bowl to enjoy

• Is free from artificial colours and flavours

• Is a source of protein and fibre

• Contains 7x BIG 45g quick cooking serves. Each sachet is kerbside recyclable

• Each box uses 20% less cardboard, compared to other sachet porridges on the market. We don’t believe in asking you to pay for fresh air!

To ensure consumers can access the Harraways Oats brand cost effectively at a time when cost of living pressure is top of mind - a new, EXTRA CREAMY OATS, BIG VALUE BAG will be available in 2024.

• Finest quality, premium quick cook oats – grown on local, South Island farms and milled from the 1867 founded, Harraways Dunedin mill

• Each bag contains fine rolled oat flakes, with no added sugar for quick and easy cooking to create extra creamy, delicious, nourishing porridge

• Offers a family, over 30 tasty, value for money serves for no more than 27 cents per serving – spot on in these budget challenging times

• Each bag is free from artificial colours and flavours

The current consumer trends in this category include health and wellness support, says Cox. “The key areas we see within this – with real momentum right now are: (i) Protein enriched (for strength); (ii) Immune health; (iii) Less sugar to assist weight management; (iv) Fibre enriched for gut health.

“Value for money is another big trend and it’s very important for the Harraways Oats range to keep being relevant on value - as our consumers continue to struggle with the cost of living crisis.

“Also trending is buying local –supporting local farmers and keeping value and employment in New Zealand, alongside contributing to less carbon miles.

“Shoppers are increasingly experimenting with new food styles and tastes at home. Our range needs to keep evolving and playing to these new trends that our consumers seek. Offering recipe experimentation is a big part of our marketing mix,” says Cox.

Harraways also mills private label for local and international businesses; manages a flourishing industrial/B2B business – with Harraways grains becoming core ingredients in other famous local food and beverage brands; and exports its fine products to the Pacific and other South-east Asian markets. For more information visit www.harraways.co.nz or email