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RXBAR moves into the hot cereal segment with oatmeal cups

Dive Transient:

  • RXBAR has launched single-serve oatmeal cups the corporate mentioned are made with the identical elements present in RXBAR and RX Nut Butter merchandise, together with egg white protein, almonds, dates. It additionally will embody gluten-free oats.
  • RX A.M. Oats are available three varieties — chocolate, maple and apple cinnamon — and every cup comprises 12 ounces of protein and 6 ounces of fiber. The merchandise is accessible on-line and will likely be at choose grocery retailers starting subsequent month, the corporate mentioned in a launch.
  • RXBAR, which was acquired by Kellogg in 2017, mentioned sizzling cereal has grow to be a $1.three billion class. The corporate was quoting greenback gross sales figures from Data Assets, Inc., for the 52 weeks ending Dec. 30, 2018.

Dive Perception:

With this single-serve oatmeal product, RXBAR is tapping into the favored sizzling cereal class however utilizing the identical wholesome ingredient method that helped it obtain success for its trademark protein bars and nut butter merchandise.

Firm founder Peter Rahal indicated as a lot to Meals Enterprise Information again in March when RX A.M. Oats had been previewed at Pure Merchandise Expo West. He mentioned the concept was to carry the model’s dietary philosophy to the morning meal.

Current gross sales knowledge underscore oatmeal’s growing enchantment. The 2018 IRI knowledge cited by RXBAR confirmed gross sales for the 4 largest sizzling cereal producers — Quaker, B&G, Submit and Bob’s Pink Mill — had been all up for the 52-week interval ending Dec. 30 of this previous yr.

Smaller opponents within the single-serve oatmeal class embody Nature’s Path, which makes revolutionary natural varieties similar to Coconut Cashew; Purely Elizabeth, providing flavors similar to Raspberry Pitaya to enchantment to adventurous customers; and Straw Propeller, which has provide you with but extra unique flavors together with Indian Curry and Moroccan Spice.

Oatmeal’s comfort issue is an enormous draw, with producers making extra single-serve cups of oats that solely want water and some minutes within the microwave or in a single day within the fridge to arrange. This simplicity is essential to customers too busy within the mornings to place collectively a extra time-consuming sizzling breakfast. Not solely is oatmeal straightforward to make, nevertheless it additionally offers protein and fiber that maintains power ranges longer.

RXBAR is utilizing the identical packaging design for its RX A.M. Oats because it has for its different merchandise, so the strong colours accompanied by a brief record of elements must be simply recognizable to followers. Given the recognition of oatmeal and the corporate’s different objects, RXBAR might see comparable success with this new product, which might even be a lift for mother or father firm Kellogg. Gross sales of its chilly cereal have slid just lately and Kellogg has lower jobs in Europe and North America, together with at RXBAR.

Kellogg’s scale and sources had been seen as key to serving to RXBAR obtain further progress when the acquisition was introduced within the fall of 2017. The mother or father firm’s distribution community has possible contributed to RXBAR’s current success, with the almond and peanut butters seeing 13% progress in distribution yr over yr, in accordance with Nielsen knowledge cited by Meals Enterprise Information, and its protein bars now being offered in additional than 125,000 areas within the U.S.

Kellogg executives mentioned on the Shopper Analyst Group of New York convention in February that the model’s distribution greater than doubled final yr and gross sales had grown 180% in measured channels. 

With its newly created Rebel Manufacturers umbrella firm available to assist it broaden into new product traces, RXBAR will in all probability proceed to forge forward with introducing further objects. It can, nonetheless, be essential to not overextend itself to the purpose it turns into much less distinctive and loses sight of what made its method so appealingly completely different within the first place.

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