Save Money on Higher Cereal Prices (50% or More)

Those of you who either love cereal or have kids (or both) know how expensive it can be to buy a single box of cereal. Well, the price is going up. Check out this from Ad Age in their article titled Kellogg to Hike Cereal Prices; Rivals Likely to Follow:

In a move expected to be followed by its rivals, Kellogg plans to raise its cereal prices 2% and decrease the size of its product packages.

Great. Kellogg's is raising prices and everyone's expected to follow.

Now while you may think that 2% isn't such a big deal for a price increase -- after all, they're entitled to it as a cost of inflation aren't they? Well, they are also implementing that trick consumer packaged goods companies love so much that raises prices without people noticing -- the shrinking box. Check out this quote:

Kellogg tested the price increases in April when it shrunk its 19 oz. box of Rice Krispies to an 18 oz. box without a price change and saw no decrease in sales. Now, similar downsizings will follow on at least seven other items.

Going from 19 oz. to 18 oz. is a 5.3% decrease in box size -- which is, in effect, a 5.3% price increase. Couple that with the 2% actual price increase, and the cost of cereal is going up 7.3%. Yikes!!!

At the same time I saw the Ad Age article, I received the September 2006 issue of Consumer Reports magazine. And what did they just happen to rate this month? You guessed it -- cereal.

They compared three top-selling cereals (Kellogg's Frosted Flakes, Cheerios, Frosted Mini-Wheats -- my personal favorite, by the way) against the Malt-O-Meal and private label knockoffs. Here's what they found:

In each case, Malt-O-Meal was in a virtual tie for overall taste quality. Malt-O-Meal cereal costs much less than the major brands.

The cost specifics per serving:

• Frosted Flakes: Kellogg's, 24 cents; Malt-O-Meal, 13 cents
• Toasted Oats: Cheerios, 24 cents; Malt-O-Meal, 13 cents
• Mini-wheats: Kellogg's, 43 cents; Malt-O-Meal, 19 cents

Ok, so the Malt-O-Meal products taste the same and cost a ton less (roughly half or more). Seems like an easy way to save money -- simply buy Malt-O-Meal products.

However, we all know that cereal makers also promote regularly. So this leaves a few other options that might actually save us even more. For instance:

• We buy the national brands when they are on discount (which they often are) for either 2 of $4 or buy one, get one free.

• In addition, my wife always seems to have several coupons for them. If you live in a market where they double coupons, this can really add up to some big money.

• We stock up when the products are on sale and when we do have coupons. At the rate we eat cereal, it won't spoil and we'll save a ton.

• Finally, we've noticed that both Wal-mart and Target have pretty good everyday prices on cereal -- prices that rival grocery store prices when the grocery stores are on deal. So if you have to have your national brand of cereal and there's no sale at your local grocer, check out Target and Wal-mart for some great cereal prices.

Comments

[Katy Raymond]

Your cereal analysis is similar to mine. The kids are all grown and flown now, but while they were growing up (and still), I had my top dollar that I'd spend on cereal: $2 per 16 oz box, or appx. 16 cents per ounce. Malt-O-Meal always filled the bill, even if I couldn't find boxes in my price range on a particular occasion.

I'm also a $2 per pound cheese girl. For this price, I go to Sam's and buy the 5 lb bricks. But that's another story.... :)

[GHoosdum]

Is there a generic or alternate brand of Cracklin' Oat Bran, or does it ever go on sale? I am loath to pay nearly $5.00 for a small box of it, but it is in fact the tastiest breakfast cereal on the face of the planet!

[FMF]

I know what you mean! I used to buy it just to snack on (with no milk). But you're right -- it's a very small box and very pricey -- and I haven't found a substitute/generic (though I think they do coupon it regularly). Hence, I switched to Frosted Mini-Wheats. ;-)

[annab]

Have you ever tried Museli cereals? You can make them at home: old-fashioned oatmeal, cereal flakes (like wheat or bran), dried or fresh fruit and some nuts. It's kind of like granola, but not baked and it is sooo goood. If you buy it, it's $$$$ but if you make it, it's $.

[Cujo]

I have to disagree - all of the off-brand cereals I've tried are noticeably inferior to the name brands. I'm not a brand snob, but cereal is one of the few items that I stick to the name brands.

That said, I only buy at the grocery store on sale with a coupon; otherwise I get it from Target. Target isn't quite as cheap as grocery-store+sale+coupon, but it's about 40% cheaper than the grocery store's full price.

We eat a lot of cereal (all three kids and I eat it every morning), so this is worth being smart about.

[Miss Kee]

I never buy Shredded wheat (YUCK!), Frosted O's, or Cheerios so this does not help me one bit. Now if they have a generic Smores cereal? YUM!