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Breakfast cereal

Processed food made from grain

  • 11 min read
  • 4 chapters
A breakfast is set up on a blue and white striped tablecloth, including: a yellow bowl of cereal with raspberries, a glass of orange juice and a glass mug of tea. Also on the table are a brightly colo
Unknown photographer/artist · Public domain

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Through Food processing, Breakfast and Wheat

Although warm, cooked cereals like oatmeal, maize, grits, and wheat farina have the longest history as traditional breakfast foods, branded and ready-to-eat cold cereals (many produced via the process of extrusion) appeared around the late 19th century. These processed, precooked, packaged cereals are most often served in a quick and simple preparation with dairy products, traditionally cow's milk. These modern cereals can also be paired with yoghurt or plant-based milks, or eaten plain. Fruit or nuts are sometimes added, and may enhance the nutritional benefits.

Some companies promote their products for the health benefits that come from eating oat-based and high-fiber cereals. In the United States, cereals are often fortified with vitamins, but can still lack many of the vitamins needed for a healthful breakfast, and so initial marketing focused on making the new products "part of a complete breakfast". A significant proportion of packaged cereals have a high sugar content ("sugar cereals" or even "kids' cereals" in common parlance). These cereals are frequently marketed toward children (in television ads, comic books, etc.) and often feature a cartoon mascot and may contain a toy or prize.

Between 1970 and 1998, the number of different types of breakfast cereals in the United States more than doubled, from about 160 to around 340; as of 2012, there were roughly 5,000 different types (estimate based on the mass customization of online shopping). In this highly competitive market, cereal companies have developed an ever-increasing number of varieties and flavors (some are flavored like dessert or candy). Although many plain wheat-, oat- and corn-based cereals exist, a great many other varieties are highly sweetened, and some brands include freeze-dried fruit as a sweet element. The breakfast cereal industry has gross profit margins of 40–45%, In 2009, market researchers expected the market to grow at a CAGR of 7.4% (in the next 5 years); it has had steady and continued growth throughout its history.

Background

Cereal grains, namely porridge (and especially oatmeal), became an important breakfast component in North America. Barley was a commonly used grain, though other grains and yellow peas could be used. In many modern cultures, porridge is still eaten as a breakfast dish.

Early America

Native Americans had found a way to make ground corn palatable, later called grits (from the Old English word grēot, meaning "gravel"). Hominy was another preparation. While this became a staple in the southern U.S., grits never gained popularity in the northern states. Food reformers in the 19th century called for cutting back on excessive meat consumption at breakfast. They explored numerous vegetarian alternatives. Late in the century, the Seventh-day Adventists based in Michigan made these food reforms part of their religion, and non-meat breakfasts were featured in their sanitariums and led to new breakfast cereals.

Cooked oatmeal

Ferdinand Schumacher, a German immigrant, began the cereals revolution in 1854 with a hand oats grinder in the back room of a small store in Akron, Ohio. His German Mills American Oatmeal Company was the nation's first commercial oatmeal manufacturer. He marketed the product locally as a substitute for breakfast pork. Improved production technology (steel cutters, porcelain rollers, improved hullers), combined with an influx of German and Irish immigrants, quickly boosted sales and profits.

In 1877, Schumacher adopted the Quaker symbol, the first registered trademark for a breakfast cereal. The acceptance of "horse food" for human consumption encouraged other entrepreneurs to enter the industry. Henry Parsons Crowell started operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating every step of the processing—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory operating at Ravenna, Ohio. Stuart operated mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell combined in 1885 and initiated a price war. After a fire at his mill in Akron, Schumacher joined Stuart and Crowell to form the Consolidated Oatmeal Company.

The American Cereal Company (Quaker Oats, but see below) created a cereal made from oats in 1877, manufacturing the product in Akron, Ohio. Separately, in 1888, a trust or holding company combined the nation's seven largest mills into the American Cereal Company using the Quaker Oats brand name. By 1900, technology, entrepreneurship, and the "Man in Quaker Garb"—a symbol of plain honesty and reliability—gave Quaker Oats a national market and annual sales of $10 million (equivalent to $390 million today).

Early in the 20th century, the Quaker Oats Company (formed in 1901 to replace the American Cereal Company) ventured into the world market. Schumacher, the innovator; Stuart, the manager and financial leader; and Crowell, the creative merchandiser, advertiser, and promoter, doubled sales every decade. Alexander P. Anderson's steam-pressure method of shooting rice from guns created puffed rice and puffed wheat. Crowell's intensive advertising campaign in the 1920s and 1930s featured promotions with such celebrities as Babe Ruth, Max Baer, and Shirley Temple. Sponsorship of the popular Rin-Tin-Tin and Sergeant Preston of the Yukon radio shows aided the company's expansion during the depression. Meat rationing during World War II boosted annual sales to $90 million (equivalent to $1.6 billion today), and by 1956 sales topped $277 million ($3.3 billion today). By 1964 the firm sold over 200 products, grossed over $500 million ($5.2 billion today), and claimed that eight million people ate Quaker Oats each day. Expansion included the acquisition of Aunt Jemima Mills Company in 1926, which continues as a leading brand of pancake mixes and syrup, the sport drink Gatorade in 1983, and in 1986, the Golden Grain Company, producers of Rice-A-Roni canned lunch food. In 2001, Quaker Oats was itself bought out by PepsiCo.

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