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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Quaker Oats To Join Cereal Price War?

Compiled From Wire Services

The cereal-aisle scuffle is turning into an all-out food fight.

Quaker Oats Co. said Monday it is mulling cutting prices on some of its cereals, which include Cap’N Crunch, Quaker Toasted Oatmeal and Life cereals.

Rivals Kellogg and Post Cereals already cut prices and analysts say Quaker, the fourth biggest cereal company, and No. 2 General Mills have little choice but to keep up.

“I think it’s a done deal,” CS First Boston food analyst Michael Mouboussin said. “I think the industry has gone through a couple of years of cost reductions and capacity reductions and are now listening to consumers and what they want - lower prices.”

Quaker spokesman Ron Bottrell would not say when the company plans to make a final decision on cutting prices.