A breakfast cereal (often simply called cereal) is a packaged food product made from cereal intended to be consumed as part of a breakfast. It is usually eaten cold as a ready-to-eat meal and mixed with a liquid, such as milk or water, though occasionally yoghurt and fruit are also added. The exception to the rule are cereals such as oatmeal and porridge, which are eaten hot.

Breakfast cereals are marketed to all ages. For adults, companies such as Kellogg's, Quaker Oats, Post, Nestlé, and General Mills promote their products for the health benefits gained from eating oat-based and high-fiber cereals. Manufacturers often fortify breakfast cereals with various vitamins. Cereals with relatively high sugar content are also produced.

The breakfast cereal industry is highly profitable, with gross profit margins around 40-45%, 90% penetration in some markets, and steady and continued growth throughout its history.

History

Breakfast cereals have their beginnings in the vegetarian movement in the last quarter of the nineteenth century, which influenced members of the Seventh-day Adventist Church in the United States. The main Western breakfast at that time was a cooked breakfast of eggs, bacon, sausage, and beef. The first breakfast cereal, Granula (named after granules) was invented in the United States in 1863 by James Caleb Jackson, operator of the Jackson Sanitorium in Dansville, New York and a staunch vegetarian. The cereal never became popular; it was far too inconvenient, as the heavy bran nuggets needed soaking overnight before they were tender enough to eat.

The next generation of breakfast cereals was considerably more convenient, and, combined with clever marketing, they finally managed to catch on. In 1877, John Harvey Kellogg, operator of the Battle Creek Sanitarium in Battle Creek, Michigan, invented a biscuit made of ground-up wheat, oat, and cornmeal for his patients suffering from bowel problems. The product was initially also named "Granula", but changed to "Granola" after a lawsuit. His most famous contribution, however, was an accident.

Post

Charles William Post, a patient at the Battle Creek Sanitarium, also made significant contributions to breakfast cereals. After his 1893 visit, he started his own sanitarium, the La Vita Inn, and developed his own coffee substitute, Postum. In 1897, Post invented Grape-Nuts and, coupled with a nation-wide advertising campaign, became a leader in the cereal business.

The 20th century