It’s ironic, but at a time when oatmeal consumption is growing, the company most associated with the product is struggling.
Quaker Foods North America, a division of PepsiCo, has reported years of sales declines.
Though Quaker remains the leader in grocery-store oatmeal sales, the company is losing share to private label and up-and-coming organic brands. According to research firm SymphonyIRI, a Chicago-based market research firm, Quaker’s oatmeal sales declined 6.4 percent to $427 million for the 52 weeks ended Oct. 31. And though the company still has 51 percent of the market, that’s down from 55 percent in 2007, when Quaker’s oatmeal sales were $491 million.
Quaker officials declined to comment for this story.
Janney analyst Jonathan Feeney said Quaker sales have likely fallen, at least in part, because traditional grocery business has lost customers to Wal-Mart and club stores. SymphonyIRI data do not include Wal-Mart and club stores.
Feeney, however, said Quaker’s parent company may have been distracted. The company has worked to keep its soda business competitive as young people increasingly are interested in energy drinks and flavored waters. “Pepsi’s focus is elsewhere,” he said.
“If you look at when they bought Quaker, they’ve tried to do some interesting things around the brand,” Feeney said, pointing to snack bars. However, he said, “Gatorade was the primary focus” of the company’s Quaker acquisition in 2001.
— Emily Bryson York
