Target Corp (TGT)

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Target Has a Surprising New Idea For Cereal Fans
By: TheStreet | July 1, 2022

• This throwback will excite fans who fondly remember cereals from their childhoods.

Everybody loves cereal, so who wouldn't love a cereal-scented candle? Brands like Altar'd State and Homesick have made candles that smell like cereal and have fake cereal pieces in the wax of the candle to make it look like an actual bowl of cereal. The cereal candle trend originated back in 2021 on TikTok, when creators were creating their own cereal candles from home.

Now Target (TGT) has decided to get into the mix, and with nostalgia being as strong of a motivator as it is, this new series may just be a home run.

What Is Target's Newest Collaboration?

This time, General Mills (GIS) and Target have teamed up to create a line of cereal candles for fans of classic cereals. They have chosen four popular cereals to base their candles on: Cinnamon Toast Crunch, Lucky Charms, Trix, Cocoa Puffs, and Honey Nut Cheerios.

Each candle can be purchased separately or as part of a set: one candle is a single wick with the brand's logo on the front of the jar, and the second half of the set is a three-wick candle in a tin that looks exactly like a box of that cereal.

The single wick 4oz novelty candle is $5, and the three-wick 11oz candle is $10. To buy all of the candles from each brand of cereal would cost you $75. They also come in a three-piece gift set for $15.

The candles also smell like their flavors -- cereal fans will love that the Cinnamon Toast Crunch candle smells like cinnamon and the Honey Nut Cheerios candle will remind them of eating a bowl of the classic cereal.

How Does this Unique Collaboration Benefit Target?

Nostalgia is a safe play for just about any business. Consumers want to be reminded of their childhood and immersed in their past with products that bring back good memories. With this collaboration, Target is taking cereals that people have enjoyed since the '80s and making customers excited about a Lucky Charms candle.

Companies have seen great success with products that remind customers of their childhood. For example, the formerly discontinued Cheez Balls from Hormel Foods-owned (HRL) Planters were brought back for good in 2019 and sold out quickly after the announcement.

Target also collaborated with Netflix NFLX for the launch of its fourth season to launch a "Stranger Things" product line, from posters to t-shirts.

Cereal-themed brand collaborations have been extremely popular in the last few years. In May 2022, Crocs (CROX) and General Mills collaborated to create cereal-inspired Crocs. The Crocs were each colored to match the cereals they were themed after, including Cinnamon Toast Crunch, Trix, Honey Nut Cheerios, and Cocoa Puffs.

General Mills' efforts are clearly working in its favor, too. Since the collaboration came out, General Mills' stock went up by 8.7% and shares have risen from $70.29 to $75.82. In addition, General Mills' reported in its last earnings call that it had boosted its quarterly dividend, even in the face of inflation and supply chain issues rocking the U.S. economy.

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