Breakfast cereal
Processed cereal grains eaten for breakfast or as a snack.
Breakfast cereal is a food made from processed cereal grains, typically eaten at breakfast or as a snack, especially in Western cultures. Although hot cereals like oatmeal, grits, and farina have been traditional breakfast foods for much longer, branded cold cereals that are ready to eat—many made through extrusion—first appeared in the late 1800s. These precooked, packaged cereals are usually prepared quickly with cow's milk, though they can also be eaten with yogurt, plant-based milks, or plain. Adding fruit or nuts is common and can improve their nutritional value.
Some companies market their cereals as healthy, especially oat-based and high-fiber varieties. In the U.S., cereals are often fortified with vitamins, but they may still lack key nutrients for a balanced breakfast; early advertising therefore promoted them as "part of a complete breakfast." Many packaged cereals contain a lot of sugar, often called "sugar cereals" or "kids' cereals." These are frequently marketed to children through TV ads and comic books, using cartoon mascots and sometimes including a toy or prize.
The number of breakfast cereal types in the U.S. more than doubled between 1970 and 1998, from about 160 to around 340. By 2012, an estimate based on online shopping customization put the figure at roughly 5,000. In this competitive market, companies have created many new varieties and flavors, some resembling dessert or candy. While plain wheat, oat, and corn cereals exist, many others are heavily sweetened, and some brands add freeze-dried fruit for sweetness. The industry's gross profit margins are 40–45%. In 2009, market researchers predicted a compound annual growth rate of 7.4% over the next five years, and the market has grown steadily throughout its history.
Cereal grains, especially oatmeal and other porridges, became a key breakfast food in North America. Barley was common, but other grains and yellow peas were also used. Porridge remains a breakfast dish in many modern cultures.
In early America, Native Americans made ground corn palatable in a form later called grits (from the Old English word *grēot*, meaning "gravel"). Hominy was another preparation. Grits became a staple in the southern U.S. but never caught on in the North. In the 19th century, food reformers pushed for less meat at breakfast and explored vegetarian options. Late in that century, Seventh-day Adventists in Michigan made these reforms part of their religion, serving meatless breakfasts in their sanitariums, which led to new breakfast cereals.
The cereals revolution began in 1854 when German immigrant Ferdinand Schumacher started grinding oats by hand in a small store in Akron, Ohio. His German Mills American Oatmeal Company became the first commercial oatmeal maker in the U.S. He marketed it locally as a replacement for breakfast pork. Better production technology—steel cutters, porcelain rollers, improved hullers—along 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 people encouraged other entrepreneurs. Henry Parsons Crowell began operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating all processing steps—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory in Ravenna, Ohio. Stuart ran mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell merged in 1885 and started a price war. After a fire at his Akron mill, Schumacher joined them to form the Consolidated Oatmeal Company.
The American Cereal Company (which used the Quaker Oats brand) made an oat cereal in 1877, manufacturing it in Akron, Ohio. Separately, in 1888, a trust combined the nation's seven largest mills into the American Cereal Company under the Quaker Oats brand name. By 1900, technology, entrepreneurship, and the "Man in Quaker Garb"—a symbol of 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) expanded globally. Schumacher, the innovator; Stuart, the manager and financial leader; and Crowell, the creative merchandiser and advertiser, 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 in the 1920s and 1930s featured celebrities like Babe Ruth, Max Baer, and Shirley Temple. Sponsoring popular radio shows such as *Rin-Tin-Tin* and *Sergeant Preston of the Yukon* helped the company grow during the Depression. Meat rationing in World War II pushed annual sales to $90 million (equivalent to $1.6 billion today), and by 1956 sales reached $277 million ($3.3 billion today). By 1964, the firm sold over 200 products, grossed over $500 million ($5.2 billion today), and claimed eight million people ate Quaker Oats daily. Expansion included buying the Aunt Jemima Mills Company in 1926, which continues as a leading brand.
- inventor of first cold cereal
- James Caleb Jackson
- key early center
- Battle Creek, Michigan
- industry gross profit margin
- 40–45%
Lore & Background
Breakfast cereals are food products made from processed cereal grains, typically eaten as part of breakfast or as a snack, especially in Western societies. They come in two main forms: warm, cooked cereals such as oatmeal, maize grits, and wheat farina, which have a long history as traditional breakfast foods; and cold, ready-to-eat cereals, many produced through extrusion, which emerged in the late 19th century. These modern, precooked, packaged cereals are usually served quickly with dairy products like cow’s milk, though they can also be paired with yogurt, plant-based milks, or eaten plain. Adding fruit or nuts can enhance their nutritional value. Some companies highlight health benefits from oat-based or high-fiber varieties, and in the United States, cereals are often fortified with vitamins, though they may still lack certain nutrients for a complete breakfast. A significant portion of packaged cereals contain high sugar levels, commonly called “sugar cereals” or “kids’ cereals,” and are marketed to children through television ads, comic books, and cartoon mascots, sometimes including a toy or prize. The number of cereal types in the U.S. more than doubled between 1970 and 1998, from about 160 to around 340, and by the era of online shopping, roughly 5,000 varieties existed. Cereal companies have introduced many flavors, including dessert- or candy-like options, and some brands include freeze-dried fruit. The industry maintains gross profit margins of 40–45% and has experienced steady growth throughout its history.
Reader's Guide
Breakfast cereal is a category of food made from processed cereal grains, consumed primarily as part of breakfast or as a snack in Western societies. While warm cooked cereals such as oatmeal, grits, and wheat farina have a long history as traditional breakfast foods, branded ready-to-eat cold cereals, many produced through extrusion, emerged in the late 19th century. These precooked, packaged cereals are typically served quickly with dairy milk, though they may also be paired with yogurt, plant-based milks, or eaten plain; fruit or nuts are sometimes added to enhance nutritional value. Some companies promote oat-based and high-fiber cereals for health benefits. In the United States, cereals are often fortified with vitamins but can still lack essential nutrients, leading early marketing to emphasize them as part of a complete breakfast. A significant proportion of packaged cereals contain high sugar levels, commonly called "sugar cereals" or "kids' cereals," and are marketed to children through television ads, comic books, and cartoon mascots, sometimes including a toy or prize. The number of cereal varieties in the U.S. more than doubled between 1970 and 1998, from about 160 to roughly 340, and later reached an estimated 5,000 types due to online mass customization. The industry has gross profit margins of 40–45% and has experienced steady growth. Historically, the shift toward non-meat breakfasts was influenced by 19th-century food reformers and the Seventh-day Adventists, who promoted vegetarian alternatives. Early oatmeal production began with Ferdinand Schumacher in 1854, and the Quaker symbol became the first registered trademark for a breakfast cereal in 1877. The American Cereal Company, using the Quaker Oats brand, combined seven mills into a trust in 1888, and by 1900 annual sales reached $10 million. Innovations such as Alexander P. Anderson’s steam-pressure method created puffed rice and puffed wheat. Intensive advertising campaigns in the 1920s and 1930s featured celebrities like Babe Ruth and Shirley Temple, while radio show sponsorships aided expansion during the Depression. Meat rationing in World War II boosted annual sales to $90 million, and by 1964 the firm sold over 200 products.
Did You Know?
- The breakfast cereal industry has gross profit margins of 40–45%.
Frequently Asked Questions
What is breakfast cereal?
Breakfast cereal is a food category made from processed cereal grains, typically consumed as a morning meal or a snack in Western cultures. It ranges from warm cooked preparations like oatmeal to branded ready-to-eat cold varieties that are usually paired with milk or another dairy product.
Where did the modern breakfast cereal industry get its start?
Battle Creek, Michigan became the key early hub for commercial cereal production in the late 19th century. The town's concentration of health reformers and manufacturers helped turn a niche food into a mass-market breakfast staple.
How is ready-to-eat breakfast cereal actually produced?
Most modern cold cereals are made by processing cereal grains through extrusion, a technique that cooks and shapes the grain into its final form. The extruded product is then dried, often coated or flavored, and packaged for sale.
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