SNAP, CRACKLE AND DROP: CEREAL PRICES TAKE THE PLUNGE

Soggy cereal sales over the past couple years prompted manufacturers to lower their prices this spring, resulting in renewed interest in shopping the cereal aisles.

Price cuts last month by Post, and followed quickly by Kellogg's and General Mills, resulted in better than ever cereal sales, local grocers say.

Post trimmed an average of 19 percent from the suggested retail price. Kellogg's cut prices between 4 and 28 percent, and General Mills cut its prices between 10 and 22 percent.

Cereal sales peaked in 1994 at just over $8 billion. By 1996, sales had slipped to about $7.75 billion. Through the early 1990s, as sales rose, prices rose also. Prices for popular breakfast cereals were approaching $5 a box.

Before the price drops, many Southeast Missouri shoppers had become accustomed to buying cereal on sale or with a coupon. Others switched to less expensive private label cereals or cereal packaged in bags instead of boxes.

But grocers say lower prices for brand-name cereal have made a difference in shopping habits.

Mike Recker, store manager at Storey's Food Giant in Cape Girardeau, said, "Everybody buys cereal, especially if you have kids. We've noticed a big difference. Cereal sales are stronger still."

Jim Kincy, store manager Country Mart at Jackson, agreed cereal sales are on the rise.

"We are selling cereal two to three to four times as well as before," he said. "People are talking about the lower prices, saying why didn't they do it a long time ago."

Schnucks manager Dennis Marchi has noticed a considerable increase in cereal sale.

"It has always been one of the better moving commodities," Marchi said. "But we have had to order more product. Movement is definitely up."

Marchi said it is too early to tell if the price cuts will boost brand loyalty, one aim of the cereal makers.

In the past, he said, brand loyalty hasn't always been strong as shoppers looked for the best price.

Joe Bollinger, store manager for Schaper's IGA Plus in Jackson, said customers have become accustomed to shopping for cereal on sale. In fact, they might switch brands to buy the sale item. However, Bollinger said his customers don't buy as much private label or bagged cereal.

On the other hand, John Meisenheimer, store manager at the Scott City Bestway, said his customers have discovered private label cereals.

"You can buy for so much less than the branded cereal," Meisenheimer said. "You are looking at 50 percent more product or paying 50 percent less, especially the bagged cereals. The price of the bag isn't nearly the cost of the box.

"People have discovered the private label is a good product and you get a lot more for your money," he said.

Will the prices stay low? "That's a good question," Kincy said. "I think within six months the prices will start back up again. This happens all the time with different products. Manufacturers do something just long enough to get the consumer's attention. When they think the consumer isn't paying attention any longer, the price will start inching up."

In the meantime, Kincy said, Country Mart is cashing in on cereal's popularity. They are promoting 10 cereals in their ads, some for as low as $2 a box. Quite a difference from prices that edged close to $5 a box just a couple months ago.

Other stores are making the most of lower prices also. They have tagged their prices and shelves to make sure shoppers notice the new, lower prices.