Calls for shake-up

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In Saudi Arabia, we are neck and neck with Nestle, yet it is the market offering the greatest opportunity.

Shoppers' health concerns and misconceptions must be tackled to add crackle and pop to morning profits in the region.

"The growth of the breakfast category has been directed by the double-digit leap in sales of breakfast cereals in recent years," according to Federica Verna, regional marketing manager Middle East & Africa for Nestle's breakfast cereals.

The greatest barriers to its victory are time and enjoyment, she says, which has fuelled the boom in ready-to-eat products.

The limited time typically experienced in the morning has prompted campaigns to transformer consumers' habits.

Verna says the company's greatest rival in Kellogg's. Nestle has leapfrogged its competitors in Saudi Arabia, she says, yet it comes in as second best in other markets in the Gulf.

Kellogg's Middle East established its Dubai office in 1999, and is now present in 12 countries across the GCC and the Levant. According to general manager Martin Tomlinson, the region is one of extremes spanning from the richest per capita nation in Qatar to one of the poorest, Yemen.

The UAE is the cereal giant's strongest market per capita consumption, in which it witnessed an impressive sales jump of almost 30% in 2007, most likely triggered by the buoyancy of the market in areas with high expatriate populations.

In the past two years, the UAE has experienced "mega growth," and the company currently presents 18 European-produced SKUs packed in English and Arabic boxes, such as Frosties, Corn Flakes, Coco Pops, Special K and All Bran.

Corn Flakes is its biggest seller, while Special K - currently racing ahead of Corn Flakes in Europe - is still gaining momentum in the Middle East.

"In all of the Gulf markets, we have a dominant market share and we are clear market leaders. In Saudi Arabia, we are neck and neck with Nestle, yet it is the market offering the greatest opportunity."

"Saudi Arabia holds a lot of untapped potential and has an immature category, so that's really where we need to grow."

The company is targeting consumers in the Kingdom by investing in communication for mothers about the kids' brands. "We spend about 20% on communication, and for us to grow the category in the way we want is an investment."

"As a corporate, Kellogg's is willing to invest in the future of this region, one of great potential."

Tomlinson emphasises that educating consumers on the importance of cereals as part of a healthy breakfast to wipe out the misconception that they are merely for children is crucial to the future growth of the category in the Middle East.

"Local consumers often consider cereals as fun food for kids, however our strategy is to change that perception."

"We are helping people to understand that cereals have added vitamins and nutrients, and are wholesome, healthy product."

"In Europe, there are a lot of obesity and nutritional debates, and the big companies tend to be pulled into that and almost blamed for that, and they have to defend themselves," he comments.

Tomlinson says Kellogg's Middle East is eager to become part of the solution to analogous debates in this region by engineering above and below the line campaigns, including its marketing drive for Corn Flakes' K-Essentials.

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