Quaker Oats is left behind in oatmeal craze

It’s ironic, but at a time when oatmeal consumption is growing, the company most associated with the product is struggling.

Quaker Foods North America, a division of PepsiCo, has reported years of sales declines.

Although Quaker remains the leader in grocery-store oatmeal sales, the company is losing share to private label and up-and-coming organic brands. According to market research firm SymphonyIRI Group, Quaker’s oatmeal sales declined 6.4% to $427 million for the year ended Oct. 31. And although the company still has 51% of the market, that’s down from 55% in 2007, when Quaker’s oatmeal sales were $491 million.

Quaker officials declined to comment for this article.

Janney analyst Jonathan Feeney said Quaker sales have probably fallen, at least in part, because traditional grocery business has lost customers to Wal-Mart and club stores. SymphonyIRI data do not include Wal-Mart and club stores.

Feeney, however, said Quaker’s parent company may have been distracted. The company has worked to keep its soda business competitive as young people increasingly are interested in energy drinks and flavored waters. “Pepsi’s focus is elsewhere,” he said.

“If you look at when they bought Quaker, they’ve tried to do some interesting things around the brand,” Feeney said, pointing to snack bars. However, he said, “Gatorade was the primary focus” of the company’s Quaker acquisition in 2001.