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Breakfast cereals


Breakfast cereal (or just cereal) is a food product made from processed grains that is often eaten as the first meal of the day. It is eaten hot or cold, usually mixed with milk, yogurt, or fruit. Some companies promote their products for the health benefits from eating oat-based and high-fiber cereals. In America, cereals are often fortified with vitamins. A significant proportion of cold cereals are made with high sugar content. Many breakfast cereals are produced via extrusion.

The breakfast cereal industry has gross profit margins of 40-45%, 90% penetration in some markets, and steady and continued growth throughout its history. The number of different types of breakfast cereals in the U.S. has grown from 160 (1970) to 340 (1998) to 4,945 (2012).

Porridge was a traditional food in much of Northern Europe and Russia back to antiquity. Barley was a common grain used, though other grains and yellow peas could be used. In many modern cultures, porridge is still eaten as a breakfast dish.

North American natives had found a way to make ground corn palatable, later called "grits" (from the Old English word "grytt", meaning coarse meal) and "hominy". While this became a staple in the southern U.S., grits never gained a hold in the northern states. Food reformers in the 19th century called for cutting back on excessive meat consumption at breakfast. They explored numerous vegetarian alternatives. Late in the century, the Seventh-day Adventists based in Michigan made these food reforms part of their religion, and indeed non-meat breakfasts were featured in their sanitariums and led to new breakfast cereals.

Ferdinand Schumacher, a German immigrant, began the cereals revolution in 1854 with a hand oats grinder in the back room of a small store in, Akron, Ohio. His German Mills American Oatmeal Company was the nation's first commercial oatmeal manufacturer. He marketed the product locally as a substitute for breakfast pork. Improved production technology (steel cutters, porcelain rollers, improved hullers), combined 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 human consumption encouraged other entrepreneurs to enter the industry. Henry Parsons Crowell started operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating every step of the processing—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory operating at Ravenna, Ohio. Stuart operated mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell combined in 1885 and initiated a price war. After a fire at his mill in Akron, Schumacher joined Stuart and Crowell to form the Consolidated Oatmeal Company.


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