Small companies such as Farmer Jo and Melbourne start-up The No Nasties Project are disrupting the breakfast market by taking the lead on innovation, developing healthier, tastier and allergy free cereals or, in the case of No Nasties, removing hundreds of tons of sugar from children’s cereals.
Industry sources said major manufacturers are hamstrung in making significant changes to established brands, as loyal consumers push back when sugar is replaced with artificial sweeteners, while alternative ingredients could disrupt the manufacturing process, reducing efficiency.
Small brands with small production runs can respond to changing consumer tastes and are enjoying strong support from major retailers.