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In the late nineteen-
twenties, two
companies—Kellogg's
and Post—dominated
the market for
packaged cereal. It was
still a relatively new
market: Ready-to-eat
cereal had been around
for decades, but
Americans didn’t see it
as a real alternative to
twenties, two
companies—Kellogg's
and Post—dominated
the market for
packaged cereal. It was
still a relatively new
market: Ready-to-eat
cereal had been around
for decades, but
Americans didn’t see it
as a real alternative to
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oatmeal or cream of wheat until the twenties. So, when the Depression hit,
no one knew what would happen to consumer demand. Post did the
predictable thing: It reined in expenses and cut back on advertising. But
Kellogg's doubled its ad budget, moved aggressively into radio
advertising, and heavily pushed its new cereal, Rice Krispies. (Snap,
Crackle, and Pop first appeared in the 1930s.) By 1933, even as the
economy cratered, Kellogg's profits had risen almost 30 percent and it
had become what it remains today:
The industry’s dominant player.
no one knew what would happen to consumer demand. Post did the
predictable thing: It reined in expenses and cut back on advertising. But
Kellogg's doubled its ad budget, moved aggressively into radio
advertising, and heavily pushed its new cereal, Rice Krispies. (Snap,
Crackle, and Pop first appeared in the 1930s.) By 1933, even as the
economy cratered, Kellogg's profits had risen almost 30 percent and it
had become what it remains today:
The industry’s dominant player.
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