Breakfast cereal
Breakfast cereal is a category of food, including food products, made from processed cereal grains, that are eaten as part of breakfast or as a snack food, primarily in Western societies.
Although warm, cooked cereals like oat meal, maize grits, and wheat farina have the longest history as traditional breakfast foods, branded and ready-to-eat cold cereals appeared around the late 19th century. These processed, precooked, packaged cereals are most often served in a quick and simple preparation with dairy products, traditionally cow's milk. These modern cereals can also be paired with yoghurt or plant-based milks, or eaten plain. Fruit or nuts are sometimes added, and may enhance the nutritional benefits.
Some companies promote their products for the health benefits that come from eating oat-based and high-fiber cereals. In the United States, cereals are often fortified with vitamins, but can still lack many of the vitamins needed for a healthful breakfast, and so initial marketing focused on making the new products "part of a complete breakfast". A significant proportion of packaged cereals have a high sugar content. These cereals are frequently marketed toward children and often feature a cartoon mascot and may contain a toy or prize.
Between 1970 and 1998, the number of different types of breakfast cereals in the United States more than doubled, from about 160 to around 340; as of 2012, there were roughly 5,000 different types. In this highly competitive market, cereal companies have developed an ever-increasing number of varieties and flavors. Although many plain wheat-, oat- and corn-based cereals exist, a great many other varieties are highly sweetened, and some brands include freeze-dried fruit as a sweet element. The breakfast cereal industry has gross profit margins of 40–45%, In 2009, market researchers expected the market to grow at a CAGR of 7.4% ; it has had steady and continued growth throughout its history.
Background
Cereal grains, namely porridge, became an important breakfast component in North America. Barley was a commonly used grain, though other grains and yellow peas could be used. In many modern cultures, porridge is still eaten as a breakfast dish.Early America
s had found a way to make ground corn palatable, later called grits. Hominy was another preparation. While this became a staple in the southern U.S., grits never gained popularity in the northern states. Food reformers in the 19th century called for cutting back on excessive meat consumption at breakfast. They explored numerous vegetarian alternatives. Late in the century, the Seventh-day Adventists based in Michigan made these food reforms part of their religion, and non-meat breakfasts were featured in their sanitariums and led to new breakfast cereals.Cooked oatmeal
, a German immigrant, began the cereals revolution in 1854 with a hand oats grinder in the back room of a small store in Akron, Ohio. His German Mills American Oatmeal Company was the nation's first commercial oatmeal manufacturer. He marketed the product locally as a substitute for breakfast pork. Improved production technology, combined with an influx of German and Irish immigrants, quickly boosted sales and profits.In 1877, Schumacher adopted the Quaker symbol, the first registered trademark for a breakfast cereal. The acceptance of "horse food" for human consumption encouraged other entrepreneurs to enter the industry. Henry Parsons Crowell started operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating every step of the processing—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory operating at Ravenna, Ohio. Stuart operated mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell combined in 1885 and initiated a price war. After a fire at his mill in Akron, Schumacher joined Stuart and Crowell to form the Consolidated Oatmeal Company.
The American Cereal Company created a cereal made from oats in 1877, manufacturing the product in Akron, Ohio. Separately, in 1888, a trust or holding company combined the nation's seven largest mills into the American Cereal Company using the Quaker Oats brand name. By 1900, technology, entrepreneurship, and the "Man in Quaker Garb"—a symbol of plain honesty and reliability—gave Quaker Oats a national market and annual sales of $10 million.
Early in the 20th century, the Quaker Oats Company ventured into the world market. Schumacher, the innovator; Stuart, the manager and financial leader; and Crowell, the creative merchandiser, advertiser, and promoter, doubled sales every decade. Alexander P. Anderson's steam-pressure method of shooting rice from guns created puffed rice and puffed wheat. Crowell's intensive advertising campaign in the 1920s and 1930s featured promotions with such celebrities as Babe Ruth, Max Baer, and Shirley Temple. Sponsorship of the popular Rin-Tin-Tin and Sergeant Preston of the Yukon radio shows aided the company's expansion during the depression. Meat rationing during World War II boosted annual sales to $90 million, and by 1956 sales topped $277 million. By 1964 the firm sold over 200 products, grossed over $500 million, and claimed that eight million people ate Quaker Oats each day. Expansion included the acquisition of Aunt Jemima Mills Company in 1926, which continues as a leading brand of pancake mixes and syrup, the sport drink Gatorade in 1983, and in 1986, the Golden Grain Company, producers of Rice-A-Roni canned lunch food. In 2001, Quaker Oats was itself bought out by PepsiCo.
History
Early developments
The first cold breakfast cereal, Granula, was invented in the United States in 1863 by James Caleb Jackson, operator of Our Home on the Hillside which was later replaced by the Jackson Sanatorium in Dansville, New York. The cereal never became popular, due to the inconvenient necessity of tenderizing the heavy bran and graham nuggets by soaking them overnight.George H. Hoyt created Wheatena circa 1879, during an era when retailers would typically buy cereal in barrel lots, and scoop it out to sell by the pound to customers. Hoyt, who had found a distinctive process of preparing wheat for cereal, sold his cereal in boxes, offering consumers a more sanitary and consumer-friendly option.
Kellogg and Battle Creek, Michigan
Packaged breakfast cereals were considerably more convenient than a product that had to be cooked, and as a result of this convenience, they became popular. Battle Creek, Michigan, was a center both of the Seventh-day Adventist Church and of innovation in the ready-to-eat cereal industry, and indeed, the church had a substantial impact on the development of cereal goods through the person of John Harvey Kellogg. Son of an Adventist factory owner in Battle Creek, Kellogg was encouraged by his church to train in medicine at Bellevue Hospital Medical College in New York City in 1875. After graduating, he became medical superintendent at the Western Health Reform Institute in Battle Creek, established in 1866 by the Adventists to offer their natural remedies for illness. Many wealthy industrialists came to Kellogg's sanitarium for recuperation and rejuvenation.In Battle Creek sanitarium guests found fresh air, exercise, rest, hydrotherapy, a strict vegetarian diet, and abstinence from alcohol, tobacco, coffee, and tea. To supplement the center's vegetarian regimen, Kellogg experimented with granola. Soon afterwards he began to experiment with wheat, resulting in a lighter, flakier product. In 1891 he acquired a patent and then in 1895 he launched the Cornflakes brand, which overnight captured a national market. Soon there were forty rival manufacturers in the Battle Creek area. His brother William K. Kellogg worked for him for many years until, in 1906, he broke away, bought the rights to Cornflakes, and set up the Kellogg Toasted Corn Flake Company. William Kellogg discarded the health food concept, opting for heavy advertising and commercial taste appeal. Later, his signature on every package became the company trademark.