• by Karlene Lukovitz  @KLmarketdaily, January 26, 2009

Kellogg has announced that it is testing "the most significant innovation in cereal boxes since the 1950's."

 

Through an optimized configuration, the space-saving box holds the same cereal volume in a smaller package, says the company, without revealing details on the package's size.

The six-month test is being conducted with "participating retailers in Detroit" that are not specified by Kellogg.

Metrics for evaluating the test's success include consumer acceptance, retailer feedback and expected internal efficiencies, according to Kim Miller, VP, morning foods marketing for Kellogg Company.

Kellogg says that the box--which is shorter and appears to be wider than a traditional one--will be easier for consumers to store. The eco benefit should also be appealing: The new design uses an average 8% less packaging material per box.

The company also said the new box could help retailers make more efficient use of shelf space and provide more varieties of products.

"It's hard to tell without getting the dimensions, but depending on how wide the box is, there could be ergonomic challenges to some degree," meaning that the box could be harder for consumers to grip, notes John Riley, VP and co-founder of Santa Ana, Calif.-based retail fixtures designer and manufacturer Display Boys. "The smaller facing also means less billboard space for promotional messaging and marketing impact.

"Display-wise, if it's wider than the traditional box, are they somehow increasing shelf space or gaining facings from top to bottom?" Riley asks, rhetorically. More shelves might be required and other CPGs would likely need to shift to similar boxes to maximize the display benefits, "but if they're really gaining shelf space at retail, as well as taking up less space in consumers' pantries, that's definitely a big win," he says. "In addition, they'll be saving space in their trucks and on their pallets."

Reducing the package size could also produce a perception benefit by eliminating that "half empty" look when consumers open the box, notes Display Boys president, COO and co-founder Darin Rasmussen.