"The company also hopes its "Right Size, Right Price" initiative will boost margins -- something all food companies are trying to do as they get squeezed by lower-cost, private-label goods"

So let me get this straight: they are reducing the size of their boxes and raising prices in hopes to attracts customers who currently purchase private-label products? I'm one of said customers, and I don't think I'd be switching to brand-name products for the privilege to pay more for less.

I love the "Right Size, Right Price" spin they're putting on it.

Anyhow, I thought cereal was already outrageously expensive enough. Something like $4.50 for a regular-sized box of even a relatively no-frills cereal nowadays, right? I didn't used to like buying the bagged bulk cereals because cereal boxes are easier to store in a cupboard, but I may have to start buying bulk and storing it in those large jars or something.

I stopped buying cereal altogether because it was too hard to find a normal sized box. Everything comes in Super Jumbo Family Size and I don't want to spend that much money for a cereal box that won't even fit in my cabinets.

So know they think I'll pay more for the priviledge of box small enough to be put away? I don't think so.

"Right Size, Right Price" because paying less for more was "Wrong Size, Wrong Price" - I'm amazed at the drivel companies expect us to just eat up.

I'd really prefer that they just raised prices and left out the insult to their customers' intelligence.

What do you expect to happen? Gas prices have more than tripled since 2000 and for no real reason.

How do you think everything is delievered?
Its all by trucks or trains that use diesel fuel.

I guess "Smaller Size, Higher Price" just doesn't have the nice ring that "Right Size, Right Price" has.....

@r81984: Gas prices were $1.00-$1.33 a gallon in 2000?

From what I understand, they're actually reducing the price but due to the difference in size, the price per ounce is going up. You're paying less, but you're getting less for what you pay for.

You should use this as an opportunity to encourage people to make their own muesli.

My mix is usually rolled oats, raisins, flax seed, sunflower seeds, banana chips, walnuts, and kasha. It tastes so much better than regular cereal and is loaded with calories, fiber, vitamins, and good fats. It is also cheaper by the pound then most cereals.

Related news: Amazon nearly always has coupons/instant discounts on cereal. Winds up being $2-2.50 for a typical ~12 oz box. Plus you don't have to go anywhere to get it.

"Right Size, Right Price" is some pretty brilliant buzzwording.

I get that Malt-O-Meal from Wal-Mart.. it is 3 something a bag and about the size of 3 normal boxes I think.
Tastes good enough for a bowl every morning.

Amazon is the best for getting bulk dry goods.
We've set up a bit of a doomsday pantry off of the deals we've gotten from Amazon.
They run monthly instant rebate specials, usually $10 off an order of $29.
http://www.amazon.com/b/ref=sc_fe_c_7_16310101_1/104-33228...

@Sathallrin:

I buy that too but I buy it elsewhere for cheaper. My wife and I have a few Tupperware cereal containers that work great. I can't tell the difference between it and the brand name stuff. Sometimes the Malt-O-Meal actually tastes better.

I can't remember the last box of cereal I bought. Somehow I manage to get my kids breakfast anyway - what with oatmeal, peanut butter toast, yogurt, fruit, eggs, whatnot. Calorie for calorie all probably cheaper than cold cereal and healthier, too. Unless one is without a functioning kitchen (which I know is depressingly not unheard of in lower income families) I don't see a real need for it.

They respond to the threat of fresher, higher-quality goods by raising the prices of their inferior goods as a cost-cutting measure?

Oh the irony...

That's why you buy the cheapo bagged cereal on the bottom shelf baby.

General Mills isn't making boxes smaller and raising prices at the same time. They're putting less in each box but charging the same amount as before, so the price per ounce is higher.

I'm still upset over half gallon ice cream containers becoming 1.75 quarts. What is the right size box? You still have to pour it into a bowl.

@rmz: As far as I remember, I was getting gas for $0.95 - 0.99 per gallon in the summer of 1999. So $1 - $1.33 per gallon in 2000 sounds about right...

Why don't they reduce the amount they pay athletes to be on the cover of a Wheaties box and pass the savings on to the consumer. I wait for specials and coupons when buying cereal, although those are getting fewer and farther between.

@yellojkt: This exactly what I was going to post, too. But, I'm doing my best to make my own. It's not always cheaper since heavy cream is so expensive but I make better ice cream than most ice cream companies.

I just buy bulk generic bagged cereal, the bigger the better! Who cares if it goes stale, I still save money! Its like 5 bucks for a bag the size of a small child! Sad, but dry dog food is essentially cereal, and you can buy 30 pounds for dirt cheap! So obviously GM is ripping you off.

@Jozef: According to the Energy Information Administration, gas averaged $1.52 nationally for all grades for all of 2000. For the month of May 2007, the national average for all grades was $3.18. February 1999 it was $0.96.

Remember that bulk packaging doesn't save money if half of it goes stale before you can eat it. There are customers who would rather pay a lower price for a smaller package, even if it is more per ounce.

The transpots costs are, of course, relevant. I also recall hearing a vague rumor that wheat, corn, and rice prices have been, shall we say, rather "strong" lately, and particularly compared to a year or two ago. So really no mystery or evil here apart why they decided to come up with some B.S. slogan (or whatever it is)that wouldn't fool a child.

Right Size, Right Price = Small Size, Large Price
While I'm not a huge fan of the book 1984 (I believe it was mainly written about Nazi Germany and a precursor to Soviet Russia), this marketing campaign is straight out of the book. Anyone want to nominate General Mills to run our new "Ministry of Plenty"?

dear general mills, can you say "plain-wrap cereal".

@PlanetExpressdelivery:

Hell yeah, so long as they go back to the original Lucky Charms marshmallow assortment. They definitely got greedy with purple horseshoes.

Sorry for my typing in the previous post, ugh.

@rmz:

Gas prices were between $0.80 and $1.00 in 2000.
So that would mean they have more than trippled.

@rnkoneil: You Googled the same article I did! 1.54 a gallon was the average. The article I read said it "surged" to this cost in March 2000.

@r81984: To your point, I paid about $1.15 at that time in my tiny stick town.

@rnkoneil:
I do not believe that statistic of gas being $1.52 a gallon in 2000.

I turned 16 in August of 2000. I did not drive before then. In those last months of 2000 I paid between $0.80 and $1.00 in Northwest Indiana near Chicago. During that time there were always gas stations on the news that would sell gas for as low as $.60 a gallon in the Chicagoland area. It was not until the begining of summer of 2001 when gas went up to over a dollar.

@r81984: Hahaha, oh man. That was good for a laugh. Thanks.

You don't believe it? Because you think I'm making it up? Or that the government agency is making it up? Or does your experience trump that information? Did you click the link? Re-read it closely. $1.52 was the average for the whole country for the whole year for all grades of gas for 2000.

Your anecdotal experience is just that: anecdotal and your experience.

how about to hell with general mills, if you don't like it then buy another brand of cereal. when i shop for cereal i buy whatever is on sale, or use whatever coupon i have on hand, or even buy bagels if they are cheaper.
the cost of gas and corn has gone up a lot, so of course cereal will get more expensive. just like stamps go up, so will everything else until someone puts a stop to this ass raping we call 'surge in gas prices'.

rnkoneil,

I to lived in a metropolitian area with very high gas prices compared to the national average (normally .20 cents above the national average) and I recall paying around $1.30ish. I too think that the $1.52 is not a correct number.

That aside I don't see it being right or wrong as a reason to insult and belittle anyone else.

Surprised nobody has mentioned this. About once a month or so I find cereal on sale for 2 bucks a box or so. I buy 2-3 boxes, and that does me for about 2 months. I don't think I'm the only one who doesn't jump on the brand bandwagon, but instead gets whatever looks interesting and is on sale.

Sometimes the kid wants Cheerios. He's two. You can't go anywhere without Cheerios when you have toddlers. It's the law or something. So I buy the generic oat hoops or some such noise for my kids. I store the cereal in those vertical tupperware containers and the boys are none the wiser.

This is just gouging made possible by consumers' awareness of rising fuel and corn prices. However, the increase in the production and shipping cost PER BOX due to increasing fuel and grain costs is probably less than $0.25.

The media is also responsible for high gas prices. There is no way Israel shelling Lebanon has anything to do with oil prices, yet consumers willingly accept this BS as an excuse. Meanwhile the oil companies laugh and roll in their profits.

The SoCal Albertsons' eight-hour sale starts in 35 minutes. Cheerios, 15-oz. box, 4 for $5.

@rnkoneil: If you're making your own ice cream (which I do) get your supplies at Costco. 1/2 gallon of heavy cream is under $3, same for half and half.

On the cereal: I've tried the store/maltomeal cheerios and they're horrible. I also never buy cereal unless it's on sale and tend to buy a lot when it is. My kids have it 4-6 days a week and I eat it at work 4-5 days a week.

@bbbici: "This is just gouging made possible by consumers' awareness of rising fuel and corn prices."

Sorry, but where are you getting this information? Ingredient and freight costs have, in fact, gone up significantly in the past 18 months or so.

I buy the off-brand stuff. It's half the price and tastes exactly the same. It probably comes out of the same factory.

It's funny----I saw this segment on the news this morning and people were complaining about cereal reaching 4 bucks a box. Um, does anyone else here live in New York City? I haven't seen a box of cereal for UNDER 5.65 in the two years I've been here, even at some crap hole locations like Food Emporium.

"Right size, right price?"

I hope someone there saw the irony.

@yg17: "It probably comes out of the same factory."

I can say with absolute certainty that this is not true - at least not for General Mills cereals.

And if you think about it, why would a company compete against itself by selling both name brand and private-label stuff?

@Dervish:

You. Are. An. Idiot.

Market penetration. Some people onyl buy name brands. some people never do... why not sell to both?

Didn't we just have an article here about dollar stores and the first comment was about a factory just sticking different labels on the same can?

Quaker's already done this, but without all the fanfare, so it doesn't surprise me to see General Mills following the "pioneers" of this trend. Oddly enough, the organic cereals have remained the same price in the same-sized box, AND they're a dollar cheaper. Plus, they're less processed and taste better. I've been buying a lot of Barbara's Puffins lately.

http://www.worldpantry.com/cgi-bin/ncommerce/ExecMacro/bar...

@Karmakin: In the past year or so, those have become very rare at my safeway. The best deals I see are usually $3/box.

We go through cereal pretty quick too :(