One of just three food brands to make this year’s list, the Malt-O-Meal ready-to-eat line was selected for its success in the cereal category. Malt-O-Meal produces 22 varieties of ready-to-eat cereal, each bearing the Malt-O-Meal brand name. The brand has tripled its market share in the past ten years, which it was able to do without traditional CPG marketing tactics such as television advertising and Sunday circular coupons, while much larger competitors and the overall cereal category have seen a decline. In fact, Malt-O-Meal’s sales were up 5.1% in 2011, outperforming big-spending competitors such as Kellogg’s, General Mills, Post, and Quaker.

“To be successful, we know we have to do things very differently than big corporate cereal marketers like General Mills, Kellogg’s, and Post. We’re proving that our non-traditional approach can work just as well as the accepted ‘norm’ of high prices, lots of expensive television advertising, FSI coupons, and constant in-store price promotions,” said Paul Reppenhagen, director of consumer marketing and strategy. “What Malt-O-Meal doesn’t spend on advertising, we pass onto the consumer, resulting in everyday prices that are substantially lower than other advertised brands. Our non-traditional marketing approach has saved American families more than $1 billion on breakfast cereal over the last six years, and that is something we are extremely proud of.”

But the share growth is not the only thing that makes Malt-O-Meal a hot brand. It is also credited with finding new ways to talk to consumers and is encouraging them to think differently about the cereal aisle. By eliminating the box and packaging more than 90 percent of their cereal only in a bag, the company uses 75 percent less consumer packaging* than the traditional box with a bag inside. Through the launch of the its “Bag The Box” campaign earlier this year, Malt-O-Meal has prompted consumers to change the way they think about cereal and to consider smarter ways to reduce the amount of packaging in the products they buy every day. All this innovation has helped the brand shake up the cereal category and has drawn a whole new demographic of consumers to Malt-O-Meal products.

“You can quickly see what makes our cereals unique,” said Reppenhagen. “We come in a bag. Cereal in a bag was, and still is, a new concept for most people. But, U.S. cereal manufacturers produce 2.3 billion cereal boxes every year, and every box has a bag inside. We think that’s a lot of unnecessary and wasteful packaging. By eliminating the box and reducing the amount of packaging that’s produced each year, we’re doing something better for the environment. And that’s a win-win situation for everyone.”

Malt-O-Meal’s strategy is paying off. Currently, the company has 10 top-50 brands, including its Frosted Mini Spooners®, the company’s best seller. Last month, this variety was named Grand Prize Winner in the frosted shredded wheat cereal category in Cooking Light magazine’s annual Taste Test Awards.

For more information or to see the full Ad Age article, click here.

*75% less packaging than boxed brands is based on the net weight of consumer packaging of comparable size packages. Even when their box size is smaller, the net weight of their box and inner bag is still greater than the net weight of the larger Malt-O-Meal bag.

Gappa was selected from a group of three finalists to receive the Business Journal award. His accomplishments include installing a risk-management program that has saved the company more than eight figures, and helping Malt-O-Meal double its sales in the last five years.

Through his thoughtful management, Gappa also created a sophisticated strategy for analyzing how money is spent on plants and equipment, which was crucial as the company invested more than $100 million to build and expand its plants over the last several years.

Gappa’s leadership has also extended beyond just straight dollars and cents – he is credited with helping the firm improve employee engagement and the quality of its workplace. In addition, Malt-O-Meal implement its first telecommuting program under his tenure.

“John understands that the right answers can’t always be figured out with a spreadsheet. Over the long term, our financial strength is driven by the strength of our people, our products, and the relationship we have with our customers. John is able to think and act strategically, and that’s what makes him a great CFO,” said Chris Neugent, Malt-O-Meal’s chairman and CEO.

A graduate of the Carlson School of Management, Gappa is a six-year veteran of Malt-O-Meal. He joined the team as CFO in 2005, after four years as CFO at Universal Hospital Services. He began his career at Pillsbury. He also serves as board chair of the American Refugee Committee and a board member of the Minnesota Zoo.

Read the Minneapolis/St. Paul Business Journal article here.

Nicknamed “The Tasties,” Cooking Light set out to find America’s best supermarket products in 18 different categories, including cereal. To qualify, foods had to be available in major markets nationwide and meet certain nutritional criteria. In the end, 200 products were subjected to a “blind” taste test and the best of each category were chosen.

Three Sisters’ Sweet Wheat cereal received a mention as one of the top three in the frosted shredded wheat cereal category, and Malt-O-Meal brand Frosted Mini Spooners was awarded the grand prize honor in the same category.  Here is what Cooking Light had to say about its selections:

• GRAND PRIZE WINNER – Malt-O-Meal Frosted Mini Spooners: “The least expensive of the bunch took our top honors with its old-fashioned traditional taste.  The airy biscuits have a hearty sprinkling of sugar and a crisp, light texture.”

• TASTE TEST AWARD – Three Sisters Sweet Wheat: “A sweet crunch hits the taste buds, transitioning into a wheaty, earthy aftertaste.  Great depth of flavor.”

Quality innovation goes into making the Malt-O-Meal brands’ frosted shredded wheat cereals. Where most shredded wheat cereals have up to seven layers of wheat shreds baked on top of one another, Malt-O-Meal brand and Three Sisters brand cereals have twelve layers, which contribute to the difference in the quality and taste. Frosted Mini Spooners is the company’s best-selling cereal variety and is sold nationwide in grocery stores, mass merchant stores, convenience stores, and dollar stores. It is approved by the USDA for inclusion in its WIC (Women, Infants, and Children) program. Three Sisters Sweet Wheat is sold exclusively at Whole Foods Market® stores in the United States.

“We are committed to finding better ways to provide a better breakfast at a better price and this Cooking Light award is proof that we’re succeeding,” says Malt-O-Meal consumer marketing manager, Linda Fisher. “It’s always flattering when the thought leaders on eating well reinforce what our loyal customers have been telling us for years.”

The 2011 Cooking Light Taste Test Awards are featured in the October issue of the publication, available on newsstands now.

Held from 7:30 a.m. until the cereal runs out (typically around noon) in the Crystal Court at the IDS Center, all proceeds from the sale will benefit the Greater Twin Cities United Way. Malt-O-Meal’s goal is to sell 25,000 bags of cereal, and for every bag sold, the company will also donate $1, for a maximum donation of $50,000.

“The amazing people at Malt-O-Meal have again inspired people to find new ways to help,” explains Andy Goldman-Gray, senior vice president, Greater Twin Cities United Way. “Their generous donation of Frosted Mini Spooners and other cereals has not only offered nutrition for the lucky people who make it to the sale, it has fed hope for the many people in our community who won’t have to go to bed hungry tonight.”

Following the success of the program in Minneapolis over the past 8 years, Malt-O-Meal has partnered with United Way branches in other areas to host similar sales. In June, the company held a cereal sale in St. Ansgar, IA, which raised more than $8,000 for the United Way of North Central Iowa. On Sept. 24, Malt-O-Meal’s Asheboro, NC plant will host a sale, with the goal of raising $10,000 for the United Way of Randolph County. And on Oct. 1, the company’s Trementon, Utah plant will host its own sale, aiming to raise $24,000, totaling more than $92,000 in potential donations to United Way affiliates across the country.

“The dedicated work of the Greater Twin Cities United Way and all its volunteers impacts our community’s most pressing problems,” says Linda Fisher, Malt-O-Meal’s corporate communications manager. “We look forward to greeting our downtown neighbors at our cereal sale on Thursday. Their support each year is a great example of the generosity and big heart of the Twin Cities community.”

Throughout the month of September, for every purchase of Malt-O-Meal brand cold cereal or Better Oats^® instant oatmeal purchased at Cub Foods, Malt-O-Meal will make a food donation to Second Harvest Heartland and Minnesota’s Feeding America Food Banks, with the goal of donating one million servings of breakfast to families in Minnesota. In addition, customers can look for special two for $5 pricing on select Malt-O-Meal brand cold cereals and four for $5 on Better Oats instant oatmeal.

“We believe that all families should have access to a good breakfast” says Malt-O-Meal’s corporate communications manager Linda Fisher. “With everyone’s help, we can reach our goal of donating one million servings of breakfast cereal to Minnesotans in need.”

Cub Foods customers can also join in the fight against hunger in two other easy ways: by purchasing non-perishable food items and placing them in donation barrels located at the entrance of all Cub stores, or making a cash donation at the register. All proceeds from the food drive will go to Second Harvest Heartland and Minnesota’s Feeding America Food Banks, including Channel One Food Bank and Food Shelf, Second Harvest Northern Lakes Food Bank and Second Harvest North Central Food Bank.

For more information about the program, visit www.HungerActionMN.com.

Malt-O-Meal has an agenda: it is out to change your mind about the cereal aisle.

“We think it’s time that people start changing the way they think about cereal and start getting smarter about how that cereal is packaged,” says Linda Fisher, consumer marketing manager for Malt-O-Meal.

Walk down the cereal aisle and you will see shelves lined with boxes. In a category that has long been dominated by boxed cereal, Malt-O-Meal is working to show consumers that there is a better, smarter way to buy their cereal – and it doesn’t have to cost more to do it. Through the company’s new Bag The Box initiative, Malt-O-Meal is setting out to show consumers that they not only can save money, but they can also feel good about buying more sustainable packaging by rethinking the box and buying cereal in a bag.

“We’re a small company – a David among Goliaths – and we originally introduced bags in 1965 because they saved money and gave us a competitive edge,” Fisher explained. “Truth is that cost savings were a big driver behind all our initiatives, from energy conservation to waste reduction. But we got to thinking about packaging and over-packaging, and realized that skipping the box and by packaging cereal in just a bag, we were also doing something good for the environment as well.”

In 2008, Malt-O-Meal hired Franklin Associates, a packaging consultant group, to analyze their carbon footprint. The group found that by packaging cereal in bags only, there’s 75 percent less consumer waste than the traditional bag-and-box packaging of most cereals. They also found that they were saving energy, fuel and other resources as well.

“People don’t have to pay a premium to be greener,” says Fisher. “Ninety percent of American households buy cereal. Every box has a plastic bag, which usually can’t be recycled, inside of it. Think of all the resources that go into producing the 2.3 billion boxes the U.S. produces each year, and then you put a plastic bag inside? That’s double packaging, and that’s unnecessary.”

Are Bags Better?

The inherent problem with any cereal bag is that it cannot be recycled in traditional plastic bag collections like at your local grocery store. Fisher says that’s because the bags are fabricated to preserve a long shelf life that grocers require and provide a moisture barrier, which keeps the cereal fresh. This applies to all types of cereal bags.

Cereal boxes are paperboard, so they can be recycled as long as they aren’t wet or contaminated.

(Earth911 invites you to Find your local recycle solution for paperboard)

But Malt-O-Meal sees the box as wasteful, even if it can be recycled. According to Fisher, Malt-O-Meal uses less energy and materials because resources aren’t used to produce boxes as well. “While we are firm believers in recycling, we are also advocates of reducing. It’s the reduce part were focused on,” she says.

While there are environmental positives by reducing packaging, there is still the matter of end-of-life disposal for Malt-O-Meal’s bags.

Enter TerraCycle.

The company collects hard-to-recycle materials and transforms them into usable products like messenger bags, fencing, coasters, stationery products and trash cans. The products can then be sent back to TerraCycle to begin the process all over again.

Simply sign up for the Cereal Bag Brigade, collect bags and mail them to TerraCycle. Each shipment earns you points that can be redeemed for $0.02 per bag for your school. Best of all, it’s totally free to participate.

If this isn’t an option for you, you can also reuse the bags. Because they are sturdy and resealable, Fisher suggests reusing them – not for food as they’re not made for secondary food use – but the many other things that need to be secured and stored. “We’ve heard from some of our customers that they make good crayon or coloring book holders for long road trip,” Fisher says.

Beyond Packaging

Malt-O-Meal’s sustainability efforts go beyond its packaging. It is the first cereal company to build new manufacturing facilities in a decade and it used as many green building and production practices as possible, including Energy Star-certified appliances.
“We do things differently,” Fisher says. “But we’re doing something right.”

The company purchases wind energy credits for its all-natural brands and has reduced water usage by 41 percent in the last 15 years. Its goal is to reach a 99-percent landfill diversion rate, and one plant has already reached 95 percent.

Fisher says that sustainability and good business go hand in hand. For instance, excess water at production facilities is a potential food safety problem. “So by reducing our water usage, we improve our food safety, and we’re also being more sustainable.”

For Malt-O-Meal, the goal has long been to pass cost savings to customers. A lot of money can be saved by adopting more sustainable business practices.

“Low cost innovation is in our DNA,” Fisher says. “We strive to find smarter, more efficient ways to do things without sacrificing quality, so we can continue to pass savings onto American families. Since 2005, we’ve saved American families over $1 billion.”

Family also seems to be in the Malt-O-Meal DNA. Now in its fourth generation, it’s been a family-owned business since the beginning.

“We take a long-view on every decision we make,” says Fisher. “If we can lessen our impact on the environment, everyone will be better off. That’s just the right thing to do, and we can do it in a way that makes business sense.”

To learn more about Malt-O-Meal’s sustainable packaging visit: http://bagthebox.com/our-blog/

Earth911 Editor’s Note: Earth911 partners with many industries, manufacturers and organizations to support its Recycling Directory, the largest in the nation, which is provided to consumers at no cost. Malt-O-Meal is one of these partners.

And that’s not the only chatter about Malt-O-Meal this week! Our Chairman and CEO, Chris Neugent, recently sat down with Forbes.com to discuss our vision and our values, and to explain the importance of skipping the box, of course. Check it out here.

We always want to encourage people to skip the box, but more importantly, this blog is intended to start meaningful discussions about being good stewards of our resources. Malt-O-Meal is proud to be part of such an important dialog – and we’d love to hear your thoughts too, to keep the conversation going.

Now that you’ve read what Mr. Stoiber and Forbes.com have to say: what do YOU think?

The program promotes good nutrition and regular physical activity – both at school and at home, focuses on the connection between student health and student achievement, and encourages families, schools and communities to eat healthy and be active together.

“Children’s physical well-being has a significant effect on their learning and long-term success, according to the American Academy of Pediatrics. When children are well-rested, well-nourished, and physically fit they are more ready to learn,” said Charles J. “Chuck” Saylors, PTA national president “National PTA is committed to building healthy families and healthy communities, and believes we all have an important role to play in making sure parents, schools, and communities have the support and resources they need. That’s why we commend Malt-O-Meal for stepping up and helping us in our efforts.”

Through its sponsorship Malt-O-Meal will provide information and support to local PTA councils to better educate parents, teachers and students on ways to make smarter choices and live healthier lives, which typically starts with breakfast.

“More than 20 million families start their mornings with a breakfast that includes Malt-O-Meal cereal,” says Chris Neugent, president and CEO, Malt-O-Meal. “We’re sponsoring PTA because we believe in their power and ability to educate parents and students about the importance of eating a nutritious and healthy breakfast, staying active and maintaining a healthy planet.”

Through the Healthy Lifestyles program, local PTAs can apply for grants of up to $1,000 in order to support programs that:

• Celebrate PTA Healthy Lifestyles Month and have a long-term impact on students and families
• Promote healthy lifestyles in the home, school and community
• Promote family engagement
• Emphasize the connection between healthy lifestyles and student achievement
• Engage a diverse group of family and community members to participate in physical activity and healthy eating

Past grant recipients have established school gardens, created intramural sports programs and educated parents on how to get involved in the creation and implementation of school wellness policies. Click here for information on this year’s program and how to apply.

“Malt-O-Meal is a family owned business that is dedicated to feeding families, particularly during this time when so many have lost so much,” says Linda Fisher, consumer marketing manager, Malt-O-Meal. “It is important for families to try and get back into a normal routine, and for many, that includes breakfast. We are just glad that we can help.”

Donations of Malt-O-Meal brand cereal should arrive this week.

About Malt-O-Meal

Founded by John S. Campbell, Malt-O-Meal is the largest family owned cereal company in the U.S. The company has delivered quality cereal products and service since 1919, and manufactures many varieties of oatmeal, family-favorite ready-to-eat and all-natural cereals as well as its original, farina-based hot cereal. Today, one in 10 servings of cereal breakfast eaten every day is a Malt-O-Meal brand cereal. Dedicated to providing families access to better breakfasts at better prices, Malt-O-Meal is continually innovating to produce, package and transport its cereals in ways that reduce environmental impact. For more information about Malt-O-Meal and its cereal products please visit www.Malt-O-Meal.com or www.BagTheBox.com.