Kellogg takes CPG brand extension to a new level
Kellogg's expanding cereal cafe concept in New York City is part of a larger trend of CPG companies opening stores in order to market their products directly to consumers.
While traditional methods of CPG brand extension may involve, say, developing new products, this new form of extension calls for brands to extend into a service experience at a store. This type of branding can be beneficial for CPG companies looking to stay ahead of evolving consumer preferences.
Kellogg opened a cereal cafe in New York City in 2016 to a cascade of enthusiastic breakfast lovers and global attention. Bowls of cereal topped with fresh fruit, nuts or candy sell for around $8. The cafe allows fans to re-imagine the cereal experience with one of the CPG industry's most iconic brands.
The cereal cafe concept has been so successful that the company is now planning to move the store to a larger space in downtown NYC.
"We are thrilled and humbled by the response we have received with Kellogg's NYC," said Aleta Chase, Kellogg's Marketing Director. "We are happy to expand on the experience and look forward to making it even more amazing in downtown NYC later this year."
In addition to Kellogg, tea maker Pure Leaf opened a cafe in New York City this past June. Yogurt maker Chobani operates two stores in New York, one in Soho and one in Tribeca. And Nutella has opened or will open stores across the U.S., including in New York and Chicago.