U.S. Market for Kids' Food and Beverages, The

Content

• Executive Summary
• Scope and Methodology
  • Market Definition of Kids' Foods and Beverages
  • Report Methodology
• The Products
  • Large and Varied Kids' Market
  • Packaging Gone Crazy
  • Meal Items
  • Snacks and Desserts
  • Beverages
  • Nutrition Labeling and Education Act
• The Market
  • Supermarket Sales Reach $11.3 Billion in 2001
  • Table 1-1: Estimated U.S. Supermarket Sales of Kids' Foods, 1997-2005 (dollars; percent)
  • Table 1-2: Supermarket Sales of Kids' Foods by Product Category, 1997-2000 (dollars; percent): Meal Items, Snacks/Desserts, Beverage Products
  • Meal Items Make up over Half of Market
  • Table 1-3: The U.S. Kids' Foods Market: Share of Supermarket Sales by Product Category, 1997 vs. 2000 (percent)
  • Overall Slow Growth, with Spurts of Action
  • Sales to Near $12.9 Billion in 2005
  • Table 1-4: Projected U.S. Supermarket Sales of Kids' Foods and Beverages, 2001-2005 (dollars, percent)
• The Marketers
  • Top Three Marketers Account for over Half of Total Market
  • Mergers and Acquisitions Abundant
  • Cyberspace Potential
  • Creative Advertising a Must
• Distribution and Retail
  • Retailers Target Kids
  • In-Store Promotions
• The Consumer
  • 39.7 Million Kids Aged 5-14
  • Households with Children
• The Products
• Introduction
  • Viable Kids' Market
  • Products Made for Kids
  • Special Note: Report Focuses on Products for Kids Aged 5-14
  • Three Product Categories
  • Products Excluded from This Report
• Meal Items
  • Breakfast, Lunch, and Dinner Products Included in Its Four Segments
  • Cereals
  • Other Breakfast Foods
  • Lunch Packs
  • Dinners/Hot Meal Entrees
• Snacks and Desserts
  • Five Snacks and Desserts Segments
  • Cookies, Crackers and Baked Goods
  • Fruit and Produce Snacks
  • Ice Cream and Frozen Novelties
  • Peanut Butter
  • Puddings, Gelatins, and Yogurts
• Beverages
  • Three Types of Beverages in This Unsegmented Category
  • Portable Beverages
• Packaging
  • Exciting Packaging a Must
  • Tiny-People Wrappers
  • TV and Movie Character Hype
  • Innovative Fruit and Vegetable Packaging
  • Safer, Smaller Drink Bottles
• Government Regulation
  • Nutrition Labeling and Education Act
  • Regulation of Specific Product Claims
  • New Food Pyramid
• The Market
• Market Size and Growth
  • Methodology for Sales Estimates
  • Supermarket Sales to Reach $11.3 Billion in 2001
  • Table 3-1: Estimated U.S. Supermarket Sales of Kids' Foods, 1997-2001 (dollars; percent)
  • Meal Items Are Largest Kids' Foods/Beverages Category
  • Table 3-2: Estimated U.S. Supermarket Sales of Kids' Foods by Product Category, 1997-2001 (dollars, percent): Meal Items, Snacks/Desserts, Beverage Products
  • Figure 3-1: Estimated U.S. Supermarket Sales of Kids' Foods, 1997-2001 (dollars; percent)
  • Meal Items in Fair Growth to $5.6 Billion
  • Table 3-3: Estimated U.S. Supermarket Sales of Kids' Meal Items by Product Segment, 1997-2001 (dollars; percent): Cereals, Other Breakfast Items, Lunch Packs, Dinner/Hot Meal Entrees
  • Snacks and Desserts in Push to $3.9 Billion
  • Table 3-4: Estimated U.S. Supermarket Sales of Kids' Snacks and Desserts by Product Segment, 1997-2001 (dollars; percent): Puddings/Gelatins/Yogurt, Cookies/Crackers/Baked Goods, Ice Cream/Frozen Novelties, Peanut Butter, Fruit/Produce Snacks
  • Kids' Beverages Progress to $1.8 Billion
  • Table 3-5: Estimated U.S. Supermarket Sales of Kids' Beverages, 1997-2001 (dollars, percent)
• Market Composition
  • Meal Items Half of Market
  • Table 3-6: The U.S. Kids' Foods Market: Share of Supermarket Sales by Product Category, 1997 vs. 2000 (percent): Meal Items, Snacks/Desserts, Beverage Products
  • Breakfast Cereals Dominate Meal Category
  • Table 3-7: The U.S. Kids' Foods Market: Share of Meal Item Sales Through Supermarkets by Product Segment, 1997 vs. 2000 (percent): Cereal, Other Breakfast Items, Lunch Packs, Meal Entrees
  • Puddings, Gelatins, and Yogurts Now Lead Snacks/Desserts Category
  • Table 3-8: The U.S. Kids' Foods Market: Share of Snack and Dessert Sales Through Supermarkets by Product Segment, 1997 vs. 2000 (percent): Puddings/Gelatins/Yogurt, Cookies/Crackers/Baked Goods, Ice Cream, Peanut Butter, Fruit Snacks/Produce
  • Snacks and Desserts Contribute the Most to Market Growth
  • Table 3-9: Dollar Change in U.S. Kids' Food Supermarket Sales by Product Category, 1999 vs. 2000 (dollars; percent): Meal Items, Snacks/Desserts, Beverages
  • Supermarkets Account for 90% of Sales
  • Figure 3-2: The U.S. Kids' Foods Market: Share of Total Retail Sales by Outlet Type, 2000 (percent): Supermarkets, Mass Merchandisers/Warehouse Clubs, Other
  • Interesting Regional Skews
  • Table 3-10: The U.S. Kids' Foods Market: Regionality of Consumption of Selected Kids' Foods and Beverages, 2000 (listing): 17 marketers
• Factors in Future Market Growth
  • Overall Slow and Steady with Undercurrents of Action
  • Kid Population Will Decrease after 2010
  • Kids Continue to Gain Buying Power
  • More Kids Cook
  • Kids' Propensity to Snack
  • Health Matters
  • Organic Foods Growing
  • Kids' Tastes
  • Licensing Opportunities
  • Schools Prove to Be a Viable Market
  • Kids Set Sail on the Web
• Projected Market Growth
  • Sales to Near $12.9 Billion in 2005
  • Meal Items to Approach $6.1 Billion
  • Snacks and Desserts in Brisk Climb to $4.9 Billion
  • Beverages in Struggle to $1.9 Billion
  • Table 3-11: Projected U.S. Supermarket Sales of Kids' Foods and Beverages by Product Category, 2001-2005 (dollars, percent): Meal Items, Snacks/Desserts, Beverage Products
  • Figure 3-3: Projected U.S. Supermarket Sales of Kids' Food and Beverages, 2001-2005 (dollars; percent)
• The Marketers
• The Marketers
  • Number of Marketers
  • Wide Range of Marketer Types
  • Multi-Category Marketers Common
  • Table 4-1: U.S. Kids' Foods Market: Top Ten Marketers and Their Product Categories (listing): Meal Items, Snacks/Desserts/Beverage Products
  • Recent Mergers and Acquisitions
  • Table 4-2: U.S. Kids' Foods Market: Selected Leading Marketers and Brands, 2001 (list): 53 marketers
• Marketer and Brand Shares
  • Note on Share Estimation
  • Top Tier of Kids' Foods Marketers Accounts for 55% of Total Market Sales
  • Table 4-3: Estimated Marketer Share of U.S. Kids' Foods Supermarket Dollar Sales, 2000 (percent): 12 marketers
  • Kellogg Leads in Meal Items
  • Table 4-4: Estimated Marketer Shares of U.S. Kids' Foods Supermarket Sales: Meal Items, 2000 (percent): 9 marketers
  • General Mills Commands Cereals
  • Table 4-5: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Cold Cereals, 1999 vs. 2000 (percent): 5 marketers, 29 brands
  • Kellogg Reigns in Other Breakfast Foods Segment
  • Table 4-6: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Other Breakfast Foods, 1999 vs. 2000 (percent): 4 marketers
  • Oscar Mayer Synonymous with Lunch Packs
  • Table 4-7: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Lunch Packs, 1999 vs. 2000 (percent): 2 marketers
  • Dinner Entrees Are Tough Niche to Handle
  • Table 4-8: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Dinner Entrees, 1999 vs. 2000 (percent): 6 marketers
  • General Mills Barely Leads Snacks and Desserts Category
  • Table 4-9: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Snacks and Desserts, 2000 (percent): 12 marketers
  • McKee Foods Holds Strong Stance in the Cookie, Cracker, and Baked Goods Segment
  • Table 4-10: Estimated Marketer Share of U.S. Kids' Food Supermarket Sales: Cookies, Crackers, and Baked Goods, 1999 vs. 2000 (percent): 8 marketers
  • Three Marketers Account for over 90% of Puddings, Gelatins, and Yogurts Sales
  • Table 4-11: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Puddings, Gelatins, and Yogurts, 1999 vs. 2000 (percent): 4 marketers, 14 brands
  • Unilever Has Strong Stance in Frozen Treats
  • Table 4-12: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Ice Cream and Frozen Novelties, 1999 vs. 2000 (percent): 7 marketers, 17 brands
  • Jif's Peanut Butter Share Dominates
  • Table 4-13: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Peanut Butter, 1999 vs. 2000 (percent): 6 marketers, 8 brands
  • No Competition for General Mills in Fruit Snacks
  • Table 4-14: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Fruit Snacks, 1999 vs. 2000 (percent): 5 marketers, 27 brands
  • Philip Morris Knows Beverages
  • Table 4-15: Estimated Marketer Shares of U.S. Kids' Food Supermarket Sales: Beverages, 1999 vs. 2000 (percent): 6 marketers, 11 brands
• The Competitive Situation
  • Licensing Opportunities Overwhelming
  • Brand Label Strength Mostly for Parents
  • School Advertising Advantages
  • Fighting for Shelf Space
  • New, Exciting Products
• Competitive Profile: Campbell Soup Co.
  • Company Overview
  • Campbell Beginnings
  • New Campbell Ballpark
  • Campbell's New Focus on Convenience
  • New SpaghettiO's Website
  • Campbell's Kid's Products
• Competitive Profile: Coca-Cola Co.
  • Company Overview
  • Company History
  • More Localized Stance
  • Coca-Cola Takes on Kids
• Competitive Profile: ConAgra Foods, Inc.
  • Company Overview
  • Acquisitions in 2000
  • "Operation Overdrive"
  • ConAgra Fights Hunger
  • ConAgra Has Grip on Kids Market
• Competitive Profile: Fran's Healthy Helpings
  • Company Overview
  • Healthy Appeal
  • Fran Feels No Threat from Larger Competitors
  • Success in the Freezer Aisle
• Competitive Profile: General Mills, Inc.
  • Company Overview
  • Wheaties a Company Mainstay
  • Cereal Adventure
  • Box Tops for Education
  • GM's Stance on Kids
• Competitive Profile: Kellogg Co.
  • Company Overview
  • Slip to 2nd Place in U.S. Cereal Sales
  • Kellogg Co. Merges with Keebler
  • Cereal Trouble
  • Disney Tie-in
  • Kids' Product Offerings
• Company Profile: Nabisco Holdings Corp.
  • Company Overview
  • Nabisco No Longer Independent
  • Integrated Marketing Intelligence Program
  • Fixing U.S. Biscuit
  • Acquisition of Favorite Brands International
  • Nabisco Boasts Significant Brand Territory
• Company Profile: Nestl S.A.
  • Company Overview
  • Company History
  • Beverage Alliance
  • Nestl's Kids
• Competitive Profile: Philip Morris Cos., Inc.
  • Company Overview
  • Company History
  • Kraft Foods North America
  • Acquisition of Nabisco Holdings Corporation
  • Cigarette Troubles
• Competitive Profile: Procter & Gamble Co.
  • Company Overview
  • Company History
  • Major Restructuring
  • Plethora of Brands
• Competitive Profile: Quaker Oats Co.
  • Company Overview
  • History in Brief
  • PepsiCo Agrees to Purchase Quaker
  • Major Brands
• Competitive Profile: Unilever Bestfoods
  • Company Overview
  • Company Beginnings
  • Path to Growth Program and Other Consolidation Ventures
  • Unilever's Kids' Foods
• Marketing Trends
  • Kids More Independent than Ever
  • Gravity of Cyber Space
  • Packaging Gone Cuckoo
  • Kids Snacking More Often, Marketers Report
  • More Younger Cooks
  • Convenience Is Key
  • More Packaged Meals
• New Product Trends
  • Kid Power Leads to a Plethora of New Products
  • "Exciting" Becoming Standard
  • Ick Appeal
  • More Healthy Kids' Products
  • Organics for Kids
  • Calcium Finally Gaining Fame
  • Fruit and Vegetable Niche Growing
  • Kid-Oriented Drinks
  • "Play Food" a Big Hit among Youngsters
  • Meal Entrees for Tiny People
• New Product Introductions
  • Table 4-17: Selected New Product Introductions for the U.S. Kids' Foods Market, 2000 (listing): 96 marketers, 153 brands
• Advertising Expenditures
  • National Consumer Advertising Totals about $751 Million
  • Top Three Advertisers Spend Nearly $541 Million
  • General Mills Spends $212.5 Million
  • Kellogg Spends Big
  • Philip Morris Spends $127.3 Million on Advertising
  • Second-Tier of Advertisers Spend Nearly $173 Million
  • Third Tier of Advertisers Account for $37.1 Million in Expenditures
  • Web Captures $130 Million of Kids' Spending
• Advertising Positioning
  • "Get Real" Stance
  • Product as Hero
  • Creativity a Must
  • Rules Meant to Be Broken
  • New Book-Product Tie-ins
  • Athletic Insight
  • MooTown's Take on Humor
  • Kraft's Emphasis on Convenience
  • Responsible Web Advertising
• Distribution and Retail
• Distribution Overview
  • Various Methods of Delivery
  • DSD Costly but Advantageous
  • Company-Owned Routes
  • Warehouse Delivery
  • Master Distributors
  • Vending Machines
  • Warehouse Clubs
  • ECR Operations
• At the Retail Level
  • Retailers Target Kids
  • Supermarkets
  • Convenience Stores
  • More about Warehouse Clubs
  • Supermarkets Account for Majority of Sales
  • Shelf Placement
  • Figure 5-1: The U.S. Kids' Foods Market: Share of Total Retail Sales by Outlet Type, 2000 (percent): Supermarkets, Mass Merchandisers/Warehouse Clubs, Other
  • In-Store Promotions
  • Retailers Promote Health
  • End-Aisle Displays
  • Stand-Alone Displays
• Retail Focus: Meal Items
  • Cereal Hype
  • Cereal Margins Average 21%
  • Freezer Battles
  • Lunch Packs
  • Retail Prices of Meal Items
  • Table 5-1: The U.S. Kids' Foods Market: Suggested Retail Prices of Selected Meal Items, May 2001 (listing): 4 segments, 6 marketers, 15 brands
• Retail Focus: Snacks and Desserts
  • 69.6% of Snack Sales Made in Supermarkets
  • Produce
  • Fruit Snacks
  • Fruit Bars and Snacks Post Relatively High Margins
  • Almost 90% of Ice Cream Sales Made in Supermarkets
  • Ice Cream and Frozen Yogurt Margins High
  • Per-Serving Snack and Dessert Prices
  • Table 5-2: The U.S Kids' Foods Market: Suggested Retail Prices of Selected Snack and Dessert Products, May 2001 (listing): 4 segments, 12 marketers, 17 brands
• Retail Focus: Beverages
  • Shelf Allowances
  • Juice and Juice Drink Aisles
  • Convenience for Kids
  • Beverage Product Prices Vary
• The Consumer
• Population Overview
  • 39.7 Million Kids Aged 5-14
  • 2010 Kid Population Projected at 39.3 Million
  • Table 6-1: U.S. Resident Population Projections of Kids Aged 5-14, 2000-2050 (number, percent)
  • Males Outnumber Females
  • Figure 6-1: Share of U.S. Population Aged 5-14 by Gender, 2000 (percent)
  • Households With Kids
  • Table 6-2: Household Size, March 2000 (number)
• Data Overview
  • Note on Simmons Data
  • Overview
  • Demographics of Kellogg's Purchasers
  • Table 6-3: Demographic Characteristics Favoring Use of Kellogg Selected Cereals by Brand, 2000 (listing): 14 factors; Apple Jacks, Froot Loops, Frosted Flakes
  • General Mills Cereal Purchasers
  • Table 6-4: Demographic Characteristics Favoring Use of General Mills Cereals by Brand, 2000 (listing): 14 factors; Cheerios, Lucky Charms
  • Toaster Pastry Demographics
  • Table 6-5: Demographic Characteristics Favoring Use of Toaster Pastries by Major Brand, 2000 (listing): 14 factors; Kellogg's Pop Tarts, Nabisco Toastettes, Pillsbury Toaster Strudel
  • Lunch Packs
  • Table 6-6: Demographic Characteristics Favoring Use of Lunch Packs by Brand, 2000 (listing): 14 factors; Oscar Mayer Lunchables, Bryan Lunch N' Munch
  • Canned Pasta
  • Table 6-7: Demographic Characteristics Favoring Use of Canned Pasta by Brand, 2000 (listing): 14 factors; Chef Boy-Ar-Dee, Franco-American
  • Dinner Mix Demographics
  • Table 6-8: Demographic Characteristics Favoring Use of Complete Packaged Dinner Mixes by Brand, 2000 (listing): 14 factors; Chef Boy-Ar-Dee, Kraft Macaroni & Cheese
  • Demographics for Microwavable Dinner Entrees
  • Table 6-9: Demographic Characteristics Favoring Use of Microwavable Dinner Entrees by Brand, 2000 (listing): 14 factors; Chef Boy-Ar-Dee, Kids Kitchen
  • Dried Fruit Snacks
  • Table 6-10: Demographic Characteristics Favoring Use of Dried Fruit Snacks by Brand, 2000 (listing): 14 factors; Betty Crocker Fruit By the Foot, Sunkist Fun Fruits
  • Cookies
  • Table 6-11: Demographic Characteristics Favoring Use of Cookies by Brand: 2000 (listing): 14 factors; Nabisco Teddy Grahams Sandwich, Betty Crocker Dunkaroos
  • Snack Cakes
  • Table 6-12: Demographic Characteristics Favoring Use of Baked Goods/Snack Cakes by Brand, 2000 (listing): 14 factors; Hostess, Madison, Little Debbie
  • Pudding Purchasers
  • Table 6-13: Demographic Characteristics Favoring Use of Pudding Snacks by Brand, 2000 (listing): 14 factors; Jell-O Pudding Snacks, Hunt's Snack Pack, and Swiss Miss Ready-to-Eat Pudding
  • Gelatin Cup Purchasers
  • Table 6-14: Demographic Characteristics Favoring Use of Gelatin Desserts by Brand, 2000 (listing): 14 factors; Del Monte Gel Snack Cups, Jello-O Gelatin Snacks Regular, and Kraft Handi Snack
  • Kids' Yogurt Purchasers
  • Table 6-15: Demographic Characteristics Favoring Use of Yogurts by Brand, 2000 (listing): 14 factors;Jell-O Kid Pack vs. Trix
  • Kids' Frozen Novelties
  • Table 6-16: Demographic Characteristics Favoring Use of Frozen Novelties by Brand, 2000 (listing): 14 factors; Drumstick Sundae Cones; Flintstone Push Up, and Kool-Aid Kool Pops
  • Peanut Butter
  • Table 6-17: Demographic Characteristics Favoring Use of Peanut Butters by Brand, 2000 (listing): 14 factors; Jif, Peter Pan, and Skippy
  • Powdered Drink Mix Purchasers
  • Table 6-18: Demographic Characteristics Favoring Use of Powdered Drink Mixes by Brand, 2000 (listing): 14 factors; Hawaiian Punch, Hi-C, and Kool-Aid
  • Single-Serve Drink Purchasers
  • Table 6-19: Demographic Characteristics Favoring Use of Single-Serve Fruit Drinks, 2000 (listing): 14 factors; Capri Sun, Hawaiian Punch
• Appendix I: Examples of consumer and trade advertising and promotions
• Appendix II: Addresses of selected marketers