Has Demographic Analysis Finally Gone Mainstream?
February 19, 2010
Those of you that are now familiar with Beacon Asset Managers are aware that we are firmly anchored in the discipline of understanding shifting demography. We know where markets are coming from and we know where markets are going based on shifting population segments in the United States and World Wide.
Yes, we also understand the key metrics of valuation and sentiment, but our sectors fall under the "macroscope" of demographic evaluation first and foremost. We are also very aware that our disciplines, no matter how accurate, are somewhat unique, special and far from being widely accepted. For this reason when the mainstream marketplace begins to echo our theories and forecasts we feel a sense of validation. The two paragraphs below are from Adage.com 2/17/2010. We did not write it, but we could have. General Mills nailed it. They get it. They are on the money.
CHICAGO (AdAge.com): General Mills spelled out its recipe for profitable growth: Hispanics, baby boomers and millennials. The Minneapolis package-food company revealed products and marketing plans designed specifically for those segments at the Consumer Analysts Group of New York conference this morning.
"We think our categories and our brands are well-positioned for strong future growth because they are on trend with the evolving consumer needs," said Ian Friendly, chief operating officer and exec VP-U.S. retail. "We're anticipating a rise in multicultural consumers, particularly Hispanics, plus a growing number of aging baby boomers and the emergence of millennials as the next generation with significant influence in the marketplace." General Mills also has its eye on U.S. Census data -- and is therefore aware that the Hispanic market will be driving 53% of the population growth between now and 2015.
Baby boomers are also a key market for General Mills, particularly with regard to the all-important, but highly mature cereal market. Highest per-capita cereal consumption is among those aged 55 or older, particularly as these consumers look for ways to add more fiber to their diets. Fiber One, Multigrain Cheerios and Honey Nut Cheerios are particularly popular. General Mills also targets boomers with Progresso soups and Yoplait yogurt. What was a $600 million category in U.S. grocery is a $5 billion category today, and the aging demographic is now looking for products that have added health benefits, such as probiotics.
At Beacon Asset Managers we are not sure how to react. Has General Mills been reading our stuff? Did they read "The Age Curve, How to profit from the Coming Demographic Storm"? Did they break into our office, hack into our computers?
We have this over whelming sense of having arrived.
