Weet-Bix for $50 a box? Yes, you read right. This Aussie favourite is selling in China at a crazy prize thanks to a celebrity endorsement any brand would love!
Following the baby formula shortage earlier in the year, Aussie stores restricted sales of the cereal due to mass exporting to China.
What’s going on and why is a box of cereal selling for such astounding prices?
Australians clearly know the value (both money and health) when it comes to the Aussie favourite. But, now it seems the rest of the world is finally cottoning onto what we already knew!
According to News.com.au, the sudden spike in popularity happened after a well-watched Chinese drama featured the product. Chinese marketing expert Livia Wang of Access China told the news site, “The situation (with Weet-Bix) happened because the celebrity was shown with the product and then the demand generated.” She added, “Who is the next hero product? We don’t know. It depends who is lucky to be picked up by celebrities, but I think it’s actually an opportunity for Australian brands.”
The website Yoycart is leading the Weet-Bix price increase in China. The site, which is similar to eBay, is listing 1.4kg boxes for $50 and 1 kg boxes for $37. The $50 price-point is 10 times higher than we’re used to paying at Coles or Woolies. Further, that 10x price increase between the store price and what the cereal is selling for in China is certainly getting attention from shoppers (or at least from shoppers who are interested in becoming cereal resellers). A spokesperson for Coles recently told the Daily Telegraph, “We have seen an increase in sales of Weet-Bix in a number of stores over recent weeks.”
Just over two years ago China soared from being the 30th export market for Weet-Bix to the first. Matthew McKenzie, the China manager for Sanitarium told the Australian Financial Review, “China has gone from the bottom of the pile to the top.” The projected rate of growth for breakfast cereals in China is estimated to be more than 10% in this year alone. With the current boom in edible exports to China (following wine, beef and dairy increases in recent years) may make foods even more valuable than iron ore, natural gas or coal in the coming decade.
Here’s a prime example of a shopper in Melbourne stocking up at his local Coles with over 40 boxes jam-packed in his trolley!
— 3AW Breakfast (@RossAndJohn) June 22, 2016