For every dollar you spend on cereal, have you ever wondered how much actually goes toward…food? We decided to run the numbers to see how Seven Sundays stacks up against Big Cereal. What we found was a little shocking.
First, it is worth pointing out that a good chunk - $0.20-$0.40 of every dollar you spend on cereal goes toward getting the cereal to you. Whether that is the costs and margin related to distributors and grocery stores, or paying UPS to ship product to your doorstep. It takes people, shelves, and trucks to get the cereal to you.
After that, we found two very different stories regarding what your hard earned dollars are going toward.
For every dollar you spend on Seven Sundays cereals, the next biggest bucket goes to pay for ingredients, which is about $0.23. Then manufacturing (making the cereal) is about $0.09 and packaging is about $0.05. Everything else covers our overhead, and on good days, maybe a bit of profit.
Now let’s compare that to Big Cereal. For every dollar you spend, about $0.27 goes towards marketing and advertising 😳. That is, convincing you to buy the product. Next, manufacturing is about $0.15 of every dollar, and packaging about $0.04 of every dollar. What’s missing? Oh yeah, ingredients! For every dollar you spend on Big Cereal, you are getting about $0.04 worth of food.
Sources: LA Times, Number Crunching a Bowl of Flakes and Handbook of Cereal Science and Technology