Chocolate, Cinnamon, And Unicorns: Inside The Effort To Save Sugary Cereals

CHICAGO (CBS) -- For the first time in 10 years, Kellogg is launching a new Froot Loops flavor — Wild Berry. A purple star will join the cereal's blend of bright red, blue and green rings for a "berry-inspired mix."

The update to Froot Loops is Kellogg's latest effort to revive consumers' shrinking appetites for sugary cereals.

But instead of running away from sugar, Kellogg is leaning into its classic brands. In 2016, it launched cinnamon Frosted Flakes and a chocolate version hit the market in November. The company also debuted a limited-edition cereal with unicorns earlier this year.

Instead, Kellogg is trying to rebrand cereal as an anytime-of-day meal that fits in the morning, as an afternoon snack or an evening desert — "Whatever Froots Your Loops" is the new tag line for the Froot Loops brand. It is selling bagged cereals to make them more snackable.

"The companies are likely diversifying their marketing strategies to try to capture new occasions," AllianceBernstein analyst Alexia Howard said. "Everybody is trying to reposition themselves into the snacking space."

Cereal sales in the United States have dipped 9% over the past five years to $10.5 billion. They will drop an additional 5% during the next five years, market research firm Euromonitor predicted.

In the past, brands pitched cereals as a healthy way to start the day and provide energy for kids, but the marketing started to fall flat as healthier options emerged.

More Americans are swapping out a bowl of cereal in the morning for protein and fruit bars, and on-the-go yogurts that offer more convenience and less sugar, according to Euromonitor research Ana Sepulveda.

"Sugar remains one of the biggest concerns for consumers in breakfast cereal, and future regulatory changes will only magnify this importance," she said.