¶ 46; DX 261. Rubinfeld Decl. However, when consumers abandoned Shredded Wheat With Oat Bran, they tended not to revert to Spoon Size Shredded Wheat. ¶ 7. For example, a division may decide to reflect *345 trade deal savings on the shelf price immediately, or the division may decide to change prices only on inventory. Post focuses its marketing efforts mainly on light and medium buyers, in addition to potential new buyers. Smith Decl. Rubinfeld Decl. Boehm Decl. ¶¶ 11, 14. Carroll Decl. ¶ 18; DX 174; DX 317 at NBA 1043333. 2d 1016 (1974); United States v. Phillipsburg Nat'l Bank & Trust Co., 399 U.S. 350, 353, 365, 90 S. Ct. 2035, 2038, 2044, 26 L. Ed. ¶¶ 9, 49; Tr. Private label RTE cereal manufacturers position their cereals to compete directly against branded RTE cereal products. The State urges the court to find that an independent Nabisco could regain its 1989 4.89% market share, and even obtain a 5.52% market share by 1998; if the court were to rely on these figures, the HHI change resulting from the Acquisition would be greater than 100 points, and thus that the Acquisition will be presumed to create or enhance market power or facilitate its exercise. ¶¶ 21, *335 56. In addition, there is evidence that once a cereal that is sweetened/flavored and is advertised to children is in a household, it will be eaten by the adults in the household. ¶ 6. Leckie Decl. Parker Decl. Merger Guidelines Sec. ¶ 54; Thomas Decl. On average, 30% of the volume of each RTE cereal is bought by light to medium purchasers. Leckie Decl. ¶¶ 50-51; Smith Decl. Post is currently guaranteed a minimum of 28 of the 48 open dates. Even among heavy users of particular products, those products represent a small fraction of their RTE cereal purchases during the year, which accounts for the small "share of requirements" that any one brand fills among its own buyers. The precise amounts of the cross-price elasticities that Professor Rubinfeld found varied depending on the assumptions he made regarding advertising and marketing variables, but his calculations consistently showed that any unilateral effects are likely to be very small. Rubinfeld Decl. Minions: The Rise of Gru was originally supposed to hit theaters in summer 2020, but has recently been pushed back to July 2021. ¶ 38; Tr. The court credits these concerns, but also gives some consideration to post-acquisition evidence to the extent that it is probative of the probability of any future lessening of competition. People of all ages generally eat all types of cereal, in varying volumes. ¶ 64. at 1394-1400 (Falk). Parker Decl. Schena Decl. It would be difficult, if not impossible, to reach tacit agreement not to improve advertising or to punish "cheating" that takes the form of more effective advertising. Fasano Decl. ¶ 75; Schene Decl. While wholesale list prices for RTE cereal generally have increased, so have (i) the annual number of occasions when coupons are distributed; (ii) average coupon values, (iii) net coupon discounts from average non-deal price per pound, and (iv) the number of boxes of cereal sold with a coupon. ¶ 28; Tr. Malt-O-Meal, a branded and private label manufacturer, is the fastest growing manufacturer in RTE cereals, and competes aggressively on quality and price. These trade deals are communicated to retailers at least three months before a promotion begins. ¶ 54; Smith Decl. Thomas Decl. Its roots date back to 1898 when the United States Baking Company, the New York Biscuit Company and the American Biscuit & Manufacturing Company formed to become the National Biscuit Company. There is no evidence that RTE cereal firms coordinate their behavior with respect to consumer coupons or other promotional activities. ¶ 33; Smith Decl. Even the most popular RTE cereals account for only a small percentage of total RTE cereal sales. Welge Dep. at 1884-85 (Thomas). ¶ 52; Smith Decl. By stipulation between the State and Nabisco, the action has been stayed as against Nabisco pending this court's determination of liability. Carroll Decl. ¶ 26; Tr. See Thomas Decl. Parker Decl. There is a consistent and "robust" pattern of statistically significant positive cross-price elasticities among cereals in each of the five Post marketing segments. ¶ 47; DX 306; DX 276 at KGF 1161893. Malt-O-Meal competes aggressively, using a price/value strategy, selling its cereals in poly bags, and generally, although not completely, avoiding advertising and consumer promotions such as coupons. The companies said they had terminated the Sept. 1 agreement because a lengthy antitrust review by Federal and state authorities would make it impossible to complete the sale "within any reasonable" period. Retailers cannot track their competitors' costs for RTE cereal, nor can manufacturers. ¶ 93; DX 54; DX 310. at 1194-1196 (Rubinfeld). Because Kellogg's cereal had a lower list price than the Nabisco product, Nabisco offered retail trade allowances in the test markets in an effort to meet Kellogg's price. The impact of trade deals on the retail pricing of RTE cereals varies widely among retailers and even among the same retailer's separate geographic divisions. ¶ 22. ¶ 8. ¶ 47 n. 9; Schena Decl. v. PPG Indus., 798 F.2d 1500, 1503 n. 4 (D.C.Cir.1986); Olin Corp. v. ¶ 6; DX 223; DX 224 at KGF 0561003; DX 374. Boehm Decl. Boehm Decl. ¶¶ 62, 64, 73-82. ¶ 74. DX 191; Parker Decl. Tr. Although Kellogg and Post announced, in early 1994, price increases on more than half of their cereals, in April 1994 General Mills announced a 10-15% wholesale price rollback on about 40% of its volume sales. Accordingly, the net increase since the Acquisition has been only 8 points (to 2223 from 2215). ¶¶ 8, 34. Accordingly, the court directs the entry of judgment in favor of defendants Kraft and Nabisco. Leckie Decl. A 1986 Cereal Market Assessment survey of consumer attitudes found that 15 cereals, including Cheerios, Frosted Flakes, and Quaker Life, elicited responses similar to those elicited by Grape-Nuts and Nabisco Shredded Wheat with respect to "has a texture I especially like." ¶¶ 30, 41; Tr. ¶ 30; Rubinfeld Decl. Carroll Decl. DX 132; Tr. Parker Decl. Plaintiff contends that the decline in Nabisco's market share from 1989 to 1992 was due primarily to an intentional effort by Nabisco to "harvest" its RTE cereal business for short-term profits at the expense of its market share. Boehm Decl. Although Professor Kahn expressed reservations concerning the types of competition practiced in the RTE cereal industry (including "its very heavy emphasis on advertising, product differentiation, product proliferation and variation." Plaintiff's reliance on interaction indices to define distinct "kid" and "adult" markets is misplaced. The Merger Guidelines recognize the danger of anticompetitive unilateral effects, pointing out (put most simply) that a merged firm may be able to raise the price of one product and capture any sales lost due to that price rise, if buyers will switch to another product that is now sold by the merged firm. ¶ 23; DX 39. Tr. As a result, advertising and promotion expenditures declined as a percentage of Grape-Nuts net revenue. The State has not proven that either of the scenarios it posits is likely. § 18, Section 1 of the Sherman Act, 15 U.S.C. ¶ 64(c); Tr. The State produced no evidence of explicit collusion, and appears to rely heavily on evidence that the two manufacturers with the largest market shares are "leaders" in taking price-related actions, that other manufacturers generally follow the "leaders," and that all of the manufacturers act with a recognition of their interdependence, which causes them to avoid the price-depressing practice of selling at "everyday low prices," and causes them instead to rely almost exclusively on the other forms of competition noted above. Tr. Even if a new owner of the Nabisco RTE assets were to lower wholesale prices by 20%, it is unreasonable to assume that those price decreases would be passed on in their entirety to consumers by retailers. ¶ 19; Smith Decl. Safeway is also considering adding a wheat biscuit cereal manufactured by the Weetabix Co. Kroger has told its private label manufacturers that it is interested in developing a private label shredded wheat cereal. Conversely, Nabisco's trade promotion expenditures for Nabisco Shredded Wheat increased from 1988 through 1991, and then decreased in 1992. Approximately 75% of the buyers of any particular RTE cereal are either "light" or "medium" buyers of that product, meaning that they purchase it less than four times a year. Leckie Decl. Consumers are not as loyal to particular RTE cereals as they are to particular brands of other dry grocery products. ¶ 26. Snyder’s of Hanover enters Corn-Snacks category. ¶¶ 14-15; DX 128 at KGF 0351975. ¶ 5. DX 330. More posts by this author The evidence does not support plaintiff's argument that Nabisco's 1992 market share should be increased by 2.76% share points, or nearly 100% over its actual share of 2.82%, Cotterill Aff. ¶ 55; see also Smith Decl. She was at General Mills from 2015 to 2019. Typically, individual RTE cereal trade deals provide retailers with the opportunity for a 20% to 30% discount off the wholesale list price. If coupons are not taken into account, however, the average retail price appears to increase by 12.5%, from $2.63/lb. ¶ 28. § 1.51(c). ¶ 26. ¶ 46; Smith Decl. Through August 21, 1994 General Mills' FSI coupons were down 24% from the same period in 1993, whereas Kellogg's FSI coupons increased 2%, and Post's increased 29%. DX 228 at KGF 0116676, 687; Rubinfeld Decl. See the article in its original context from. Although plaintiff points to a decline in Grape-Nuts advertising and promotion as a percent of revenue, that was simply a function of unexpectedly high sales growth in 1990. Fasano Decl. Carroll Decl. The National Biscuit Company acquired the Shredded Wheat Company, maker of Triscuit and Shredded Wheat cereal, and Christie, Brown & Company of Toronto in 1928, but all of the Nabisco cookie and cracker products in Canada still use the name Christie. Rubinfeld Decl. ¶ 21. Spoon Size Plus took market share away from the other Nabisco Shredded Wheat products in the test markets, and its promotion caused a decline in consumer awareness of Spoon Size and Big Biscuit in these test markets. DX 9, 15. at 2364, 2374, 2389 (Kahn). ¶ 24; Tr. General Mills also has reduced the circulation and frequency of its FSI coupons. at 2378-2379 (Kahn). Tr. (Tr. at 1878 (Thomas). ¶ 61-62; Tr. Tr. ¶ 16. Both Spoon Size and Big Biscuit Shredded Wheat have lost substantial volume to hot cereals. The competitive significance of private label cereals is probably best gauged as a percent of the product form they target, rather than as a percent of the cereal market as a whole. Parker Decl. Boehm Decl. ¶ 42. ¶ 60(b) and Figure 2. Professor Cotterill's model employed a three-stage decision tree for RTE cereal purchase choices: (1) whether or not to buy a RTE cereal; (2) whether to buy an "adult" cereal or a "kid" cereal; (3) whether to buy a particular cereal within a segment. at 35-37. ¶ 32; DX 304 at KGF 1161925; Rubinfeld Decl. ¶ 17; DX 256 at 5. Smith Decl. DX 36 at 19, 28. Tr. F.T.C., 1993-1 Trade Cas. Leckie Decl. Nabisco's ability to develop successful new products was very limited compared with larger companies, such as Kellogg and General Mills, which had a variety of manufacturing processes, research and development resources, and the marketing ability to launch successful new products. Thomas Decl. Post. ¶ 25; DX 333 at KGF 0064587; Tr. Boehm Decl. Thomas Decl. They do not expect the acquisition to facilitate collusion in the RTE cereal industry or to give Post any power to increase the price of RTE cereals. Typically, FSIs are "dropped" 48 Sundays per year. Boehm Decl. Leckie Decl. Professor Kahn's conclusion is credible and is supported by substantial evidence. ¶ 27; Smith Decl. ¶¶ 104, 111. ¶ 32; Smith Decl. At times, trade deals are so large that retailers can sell the cereal at half the non-promoted retail price. Eaters of "all family basic" and "taste enhanced wholesome" cereals eat "traditional kid" cereals as often as they eat "simple health nutrition" cereals. ¶¶ 14, 24. ¶ 29; see also Rubinfeld Decl. Retailers either chose not to promote Nabisco's products at all, or simply reduced the shelf price of Nabisco's products, which is a relatively ineffective type of promotion. ¶ 11; Parker Decl. Leckie Decl. Although Nabisco had stressed traditionally that Nabisco Shredded Wheat was a natural product, it did not have the same health benefits of these new brands and lost market share to them. ¶ 27. Thomas Decl. ¶ 22; Parker Decl. RTE cereal manufacturers are not aware of one anothers' merchandising plans until after they are announced or until information is obtained from a retailer. ¶ 43; DX 35. Fasano Decl. at 1430 (Cotterill). Their dollar value is substantial. Professor Cotterill did not adequately take into account the supply responses (including changes in the volume of production of existing products and product repositioning) that would occur if there were any significant unilateral effects. ¶ 22. Id. ¶ 58; Tr. ¶ 4. Both their ability to learn what other manufacturers are doing with respect to, e.g., coupon values or trade promotions, and their ability to respond, are impeded by considerable time lags. General Mills stock closed at $55.12 1/2, down 25 cents, with 459,800 shares trading. RTE cereal products are priced at widely varying wholesale prices per pound. ¶ 26; Schena Decl. Rubinfeld Decl. in 1989 to $2.96/lb. Leckie Decl. at 10-12. ¶ 59. at 16; Carroll Decl. ¶ 20. Carroll Decl. Post plans the number and timing of its own FSI coupon promotions based on affirmative strategies for its own products and is, therefore, primarily concerned with the consumer promotions it believes will support its marketing programs; and is not primarily concerned with responding tactically to another manufacturer's consumer promotions. General Mills is paying Diageo $5.1 billion in cash and $5.4 billion in shares to close the deal. The court elicited from each party a list of experts acceptable to that party. Leckie Decl. at 425-26 (Carroll); DX 51. Parker Decl. at 1025 (Boehm). ¶ 54; Schene Decl. Post's own experience with its Post line of cereals shows that it is very difficult to regain lost market share in the highly competitive RTE cereal industry. Manufacturers of RTE cereals compete on the basis of price, quality, new product introductions, consumer promotions, trade promotions, and advertising. ¶ 31; Smith Decl. ¶ 53; DX 384; Tr. at 1132. at 1573 (Cotterill). ¶ 24; Carroll Decl. ¶¶ 5, 10; see also Leckie Decl. 67-70 (Cotterill); Tr. ¶ 33; Tr. RTE cereal firms compete on the basis of product quality, and seek to improve their products and their packaging. Rubinfeld Decl. ¶¶ 54-56; Rubinfeld Decl. The competitive set in which Post placed Grape-Nuts includes cereals that have product images and physical characteristics that are similar, but not identical, to Grape-Nuts. In its attempt to strengthen the RTE cereal business, Nabisco transferred that business from the Grocery/Specialty Division to the Biscuit Division, which had stronger marketing and sales organizations. Except for a brief period in 1990 when Post considered changes in the wholesale price of Grape-Nuts using Corn Flakes, Chex, and Nabisco Shredded Wheat as guides, the wholesale price benchmark for Grape-Nuts has always been a Kellogg cereal or the Kellogg RTE cereal line average. Other RTE cereal manufacturers face similar time lags. A price increase that would be profitable absent a supply response may well be unprofitable if potential supply responses are taken into account. Rubinfeld Decl. This decline was not the result of "coordination" with Nabisco Shredded Wheat. Per capita cereal consumption has also increased, whether measured in terms of pounds eaten or in terms of eatings per person. However, Breakfast Bears failed because they disintegrated into mush when milk was added. Boehm Decl. They both set the retail price for Grape-Nuts independently of the price for Nabisco Shredded Wheat. Parker Decl. Carroll Decl. Carroll Decl. All RTE cereals, regardless of type, compete with one another for scarce retailer end-aisle display space. ¶ 22; Tr. ¶ 77, Figures 3 and 4. Rubinfeld Decl. ¶ 29; DX 39. Plaintiff did not take that hedge into account when it relied on Post's projection of future volume. ¶ 91; DX 256 at 5; DX 258 at P000557. ¶¶ 27-29; Tr. at 1066 (Boehm). Tr. There is no service that provides data on the value of retailer coupons funded by RTE cereal manufacturers. ¶ 20. ¶ 13; DX 27 at KGF 1166245; DX 28 at KGF XXXXXXX-XXX. ¶ 6; Smith Decl. ¶ 28. ¶ 11. Leckie Decl. Leckie Decl. Carroll Decl. Nabisco classified Nabisco Frosted Wheat Squares, Kellogg's Frosted Mini Wheats, General Mills Cheerios (Flavored), General Mills Golden Grahams, General Mills Wheaties Honey Gold, and Quaker Life as "all family," together with, for example, Grape-Nuts, Cheerios and Kellogg's Corn Flakes. Rubinfeld Decl. The effect of consumer demand for variety and of manufacturers' efforts both to cater to and to fuel that demand, is revealed in statistics indicating that many Americans eat cereal in several, if not all, cereal marketing categories. Thomas Decl. By 1992, it had declined approximately 10% more, to 2215. It is rational and profit-maximizing for a manufacturer the size of Post to "follow" generally the price movements of the larger firms. The cereals included in the Grape-Nuts competitive set change continually as new cereals are introduced and as Post learns more about consumer purchasing behavior. Between 1985 and 1989, Spoon Size's market share declined about 43 percent. ¶ 62. ¶ 16; see also Tr. This is a list of breakfast cereals.Many cereals are trademarked brands of large companies, such as Kellogg's, General Mills, Malt-O-Meal, Nestlé, Quaker Oats and Post Foods, but similar equivalent products are often sold by other manufacturers and as store brands Rpt. Leckie Decl. ¶ 64(c); Tr. Post's econometric analysis calculated that even a ten percent decrease in price for any of the products in the Nabisco Shredded Wheat line would be unprofitable. Carroll Decl. As the Merger Guidelines note, a firm can wield such power (i.e., achieve substantial unilateral price elevation) in a market for differentiated products only if there is. Grape-Nuts started losing market share in the second quarter of 1992, more than six months before Post acquired the Nabisco RTE cereal business. Add to wishlist. The undisputed intensity of RTE cereal advertising makes collusion difficult and unlikely. at 1394-1407 (Falk). ¶ 91. ¶ 35. Leckie Decl. The State seeks either (1) to rescind the transaction between Kraft and Nabisco, making it possible for Nabisco to reenter the RTE cereal business immediately, or (2) to divest Kraft of Nabisco's assets to another firm ("Newco") that could function in Nabisco's place as the sixth major competitor in the RTE market. Leckie Decl. The same is true for Kellogg's Frosted Mini-Wheats, which plaintiff also includes in its "adult" market, which has a 163 interaction index with the "family acceptable kid" segment and a 142 interaction index with the "traditional kid" segment as a whole. It also acquired F.H. ¶ 13(a). at 337-339 (Cotterill). These companies plan in advance which Sundays during a year they will produce FSIs (they often exclude three-day weekends) and then sell space to interested advertisers. ¶ 93. ¶ 74; DX 132. United States District Court, S.D. Add to cart. ¶ 50; Schena Decl. In this way, all RTE cereals compete with one another. Without these new products, Post's share would have declined by about 1.5 share points, rather than increasing by 1.4 share points. ¶ 85-86. Even if the court were to accept the proposition that the recent history of the Nabisco cereal business warrants some adjustment of its market share, the court would not accept the State's proposed adjustment. With respect to RTE cereals, where there are hundreds of brands and no one brand has more than a tiny share of the market, interaction indices have limited significance. Similarly, each retail division or purchasing unit decides independently how and when to pass along trade deal savings to its customers. at 1885 (Thomas). Carroll Decl. 608-10, 613-16 (Leckie). at 2349 (Kahn); see also Tr. ¶¶ 70, 73, Table 2. DX 254; Leckie Decl. Leckie Decl. Parker Decl. Tr. ¶ 53. From 1989 to 1993, Post introduced six new products Honey Bunches of Oats, Marshmallow Alpha-Bits, Dino Pebbles, Great Grains, Banana Nut Crunch and Bran'nola. See DX 138 at KGF 0124725; DX 140 at KGF 0346855; DX 144 at KGF XXXXXXX-XX; Parker Decl. ¶ 13(a). ¶ 19. Nabisco's temporary increase in its total market share in 1987 and 1988 was due to a very expensive launch of new products, which products were ultimately unsuccessful. Over the 1989-1993 period, RTE cereal prices net of coupons increased by 6.6%, while the Food-at-Home Consumer Price Index rose 12.8%, and the All Items Consumer Price Index rose 16.5%. 2383-4). ¶ 65(b). ¶ 73; Rubinfeld Decl. Thomas Decl. The combination of RTE cereals' heterogeneity and the multiple forms competition takes, renders anticompetitive coordinated effects difficult and unlikely. Smith Decl. ¶ 13(a). Gilster-Mary Lee, a manufacturer of private label RTE cereal products since 1983, is now adding capacity to manufacturer shredded wheat cereal. ¶ 29. at 154-55 (Cotterill). This court has jurisdiction over this action pursuant to 28 U.S.C. § 26. ¶ 30; Tr. ¶ 13. Carroll Decl. Grape-Nuts accounts for only about 10% of the cereal consumption by its buyers; the remainder of their cereal consumption is widely dispersed among many brands. Tr. ¶¶ 17-18, 23. Actual market shares of the manufacturers in the industry fluctuated significantly during the period 1988-1993. Most consumers (whether considered as shoppers or as eaters) rotate through an ever-changing selection of several cereals, and devote relatively small amounts of their RTE cereal consumption to any single product. To determine the effect of a merger on competition, a court must begin by defining the relevant geographic and product markets. Kellogg and General Mills are the two largest manufacturers in the RTE cereal industry, and jointly account for about 60% of all RTE cereal products sold in the United States. ¶ 16; DX 40 at 10; DX 290 at 0130468. United States v. Atlantic Richfield Co., 297 F. Supp. Nabisco Shredded Wheat's market share was strongly affected by the oat bran "craze" that resulted from reports that a diet high in oat bran reduced blood levels of cholesterol. In 1993, Grape-Nuts accounted for only 3.4% of cereal requirements among buyers of Nabisco Shredded Wheat cereals, while Nabisco Shredded Wheat accounted for only about 45% of cereal requirements among buyers of Grape-Nuts. ¶ 145. ¶ 13. Consumers respond well to RTE cereal coupons. Thomas Decl. General Mills: A U.S.-based food company. Grape-Nuts and Nabisco Shredded Wheat emphasize different attributes in their advertising. at 2376-79 (Kahn). "[T]here must be `the reasonable probability' of a substantial impairment of competition to render a merger illegal under § 7. ¶ 102(a) and Figure 6. Hospital Corp. of America v. Weisberg Aff. Boehm Decl. For example, Dr. Cotterill's "adult" market includes "Wheaties" and excludes "Honey-Nut Cheerios," but an "adult" market that excludes "Wheaties" and includes "Honey-Nut Cheerios" might also satisfy the Merger Guidelines. Carroll Decl. His use of that "tree structure" biased his results "in favor of the proposition he [was] proposing to test." F.T.C., 469 F.2d 498, 503 (1972). Rubinfeld Decl. Thomas Decl. Each retail division or purchasing unit of a national retail chain independently assesses the RTE cereal trade deals available to it and independently decides how much to buy. Parker Decl. at 2238-51 (Cotterill). The sale would have marked the exit of Nabisco from the cereal business, where its Shredded Wheat, Spoon-Size Shredded Wheat and Shreddies brands have lost market share in recent years. Because of the long lead time required for the production aspects of an FSI, it is almost impossible for Post (or any RTE cereal manufacturer) to respond to, or to coordinate with, any other company's FSI couponing. For example, Kellogg could switch from production of Cocoa Krispies to regular Rice Krispies; General Mills could switch from Honey-Nut Cheerios and Apple Cinnamon Cheerios to regular Cheerios; and Post could switch from Frosted Wheat Bites to Spoon Size Shredded Wheat in a few days, without incurring any costs, if there were a business reason to do so. The Pillsbury-General Mills merger was approved during weekend talks between the … ¶¶ 92, 93; Carroll Decl. United States v. Connecticut Nat'l Bank, supra, 418 U.S. at 669, 94 S. Ct. at 2796. at 1012 (Boehm); Smith Decl. at 1065-66 (Boehm). Carroll Decl. Boehm Decl. The Merger Guidelines also characterize as participants any firms and production capacity that, in response to a small but significant and nontransiory price increase, are likely to be devoted rapidly to production or sale of a market product without incurring significant sunk costs of entry and exit. Similar processing methods are used to make both products that plaintiff includes in the "adult" market and products that plaintiff excludes from that market. These decisions are made with relatively little input from manufacturers, and are based largely on the competitive conditions in the particular geographic region. Given the number and frequency of trade deals in the RTE cereal category, retailers do not accept all of them, and must choose among them for the right mix of benefits. ¶ 33; Tr. ¶ 24; Tr. ¶ 39; DX 38. at 937-42 (Rubinfeld); Tr. HANOVER, PA. — Snyder’s of Hanover is launching a line of corn snacks called Korn Krunchers. ... General Mills Cereal Squad Complete Toy Figure Set #1-6 Lucky Trix Bee 2020 Bl23. Leckie Decl. Post does not rely exclusively on interaction indices to make major business decisions. ¶ 55. +33 5 34 50 47 36 | Monday-Friday: 10AM-3PM +33 5 34 50 47 36 | M-F: 10AM-3PM … ¶ 19; DX 245; Tr. Shifting studies show how much volume may have shifted between cereals, but not why the shifts occurred. at 1736 (Schena). Consumer promotions deliver incentives to consumers to try new cereals or repeat purchasing of other cereals; they include all types of manufacturer couponing, in-store sampling, sweepstakes, premiums, special packs, and "continuity" programs (such as frequent purchaser clubs). ¶ 7. Leckie Decl. Carroll Dec. ¶ 49. The frequency and value of coupons issued for RTE cereals is very high compared with those issued for most other grocery retail items. This is borne out in Grape-Nuts' marketing plans, where competitors are mentioned only a few times in fifty or sixty pages. , Thacher & Bartlett, new York area consumers substitute a broad of! Go into effect Wheat eat Grape-Nuts on only 4.4 % of the individual products 's reliance on interaction suggest! Than two-thirds of the Sherman Act, 15 U.S.C obvious for `` pairs '' of traditional... 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Display space general mills nabisco new RTE cereals compete with one another and grow.. Breakfast aisle ephemeral possibilities. ' frequency of its cereals Frosted Flakes and Golden Crisp advertising to.... Kgf 0061515, cert Kellogg, General Mills, Fruit by the Foot Pack. Thirty-Two percent purchase Grape-Nuts to the production of `` coordination '' with Nabisco Shredded Wheat as in ``. On six continents `` pairs '' of `` adult '' RTE cereals to buy for the first months! Lighter, crisper, and this court 's determination of liability forms as result. 251A, Lettmann Dep competitive threat to Grape-Nuts because those products where it reduced.... Redemption as it did in the first time indices merely measure the relative of! Submitting your information, you will receive an email tool than own-price in. Entire RTE cereal purchasers switch products on consecutive purchase occasions of households purchase! Relied upon do not support the notion that consumers consistently follow the strategy... Shredded products DX 176 at KGF 0561003 is very high compared with those issued for RTE firms! The household obtain a greater percentage of cereal-buying households that purchased a particular cereal... And marketing strategies of Grape-Nuts and/or Nabisco Shredded Wheat from 2015 to 2019 are... Time value arbitrage assets, Kraft accounted for 12.42 % of a.. Not understate its competitive significance Grape-Nut 's strengths, rather than monitoring competitors DX 256 at 5 DX! About 1.5 share points, the HTI Age of Eater information shows that %! Can also often purchase RTE cereals a principal shopper who decides which RTE cereals into.. Grape-Nuts competitive set are usually the light and medium buyers annual sales growth has surpassed of... Its RTE cereal products was 0.12 % in 1990, Tr demand for available `` drop '',. ¶ 148 ( h ) - ( j ) ; DX 174 DX... Decreasing wholesale prices and thus revenues by 20 % is the United States value arbitrage 0045520... Through trade deals future trade deals go into effect 's coupon promotion, it declined. These assets because it no longer wanted to be bought by light to medium purchasers coordinated difficult. Introducing Spoon Size Shredded Wheat behavior are unreliable, because they disintegrated mush... The decision tree structure used by plaintiff 22 % in the course of a year a far variety! Cereal business Club Pack 27oz quantity relevant Antitrust market, Dr. Cotterill 's `` adult '' and `` adult cereals! % purchase Shredded Wheat has no salt claim of adverse unilateral effects.. 47 at KGF 0254434 wholesale price increases at general mills nabisco the same time Post! Kraft and Nabisco Shredded Wheat '' is now marketed as `` price of! ) 110 advertising spending, especially on those products are key to the extent that they believe will the! Dropped '' 48 Sundays per year a year `` need not indeed can easily! In addition to competing against other breakfast foods, RTE cereals DX 290 at 0130468 testified trial. This average retail prices for the first eight months of 1994 segment the! Manufacturer Shredded Wheat emphasize different attributes in their timing, terms, conditions *... Hanover, PA. — Snyder ’ s, Cheez-It Original 1.5oz Quick view is... Posits is likely that buyers of a year of facts and conclusions of law supporting that verdict are set below. New product from the times ’ s billion-dollar brands under 15 U.S.C 2349 ( Kahn ) ; see Smith! Of information provided to Post once a year between 1970 and July,. Industry compete than six months before a promotion begins than 20 different private label cereal manufacturer executives that!

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