Oat Bran Health Claim Boosts Hot Cereal Sales

Hot cereal makers got a boost from the FDA’s precedent-setting decision last January to allow the first food-specific health claim for oats.

The recommended label reads, “Diets low in saturated fat and cholesterol that include soluble fiber from oatmeal may reduce the risk of heart disease.” To qualify for the claim, products must contain 0.75 gram or more of soluble oat fiber per serving, or 25 percent of the daily 3 grams that has been shown to reduce cholesterol levels.

“Before that time, we were trying to communicate to the consumer in less than optimal language,” says Mark Dollins, director of corporate communications for The Quaker Oats Co. in Chicago. He says the company’s hot cereal sales were up 8 percent for the final quarter of 1997.

The FDA ruling seems to have injected new life into the entire hot cereal category. Information Resources Inc. in Chicago reports that for the 52 weeks ended Oct. 12, hot cereal sales rose 3.6 percent to $688 million.

Nabisco has capitalized on the hot cereal boom by creating more “indulgent flavors,” mirroring the “baked taste” trend in cold cereals. The company is following its successful introduction of Banana Nut Bread Instant Multigrain Hot Cereal with two new flavors, Cinnamon Raisin Strudel and Apple Cranberry Cobbler. Although the cereals do not bear the FDA-sanctioned health claim (though they could), they do tout they’re “low fat,” “cholesterol free” and “a good source of fiber.”

In the natural foods category, Fantastic Foods has made hot cereal more convenient with its instant hot cereals in a cup. Their August 1995 debut was the company’s most successful product introduction; since then other natural foods companies have added instant hot cereals to their line. One of the hopes in the industry is that such convenient packaging will encourage consumers to view hot cereal as a food that can be eaten any time of day.

“Consumers are looking for convenience but, at the same time, they want healthful foods,” says Larry Tsai, vice president of marketing for Fantastic Foods in Petaluma, Calif.

Quaker Oats is apparently getting the same message, increasing the amount of fruit in its instant oatmeal line.

When buying hot cereals, read ingredient labels to be sure that whole-grain oats (which includes oat bran) are among the first few ingredients.