Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 10, 1995                   TAG: 9505100017
SECTION: EXTRA                    PAGE: 1   EDITION: METRO 
SOURCE: CONNIE MIDEY THE ARIZONA REPUBLIC
DATELINE:                                 LENGTH: Medium

NO NEED TO PAY FOR TONY THE TIGER TO HAVE G-R-R-EAT CEREAL

If they're anything like 25 kindergarten pupils at Solano Elementary School in Phoenix, they'll be just as happy with the cheaper generic or store-brand versions of most of their favorite cereals.

That's good news in light of a report that cereal prices have risen 90 percent in the past decade, an increase two times greater than for other foods. Food-industry officials, however, say cereal prices have risen less than the rate of inflation, if coupon discounts are considered.

Reps. Charles Schumer, D-N.Y., and Sam Gejdenson, D-Conn., who released the report in March, called for a Justice Department antitrust investigation into the four cereal-industry giants - Kellogg's, General Mills, Post/Nabisco and Quaker Oats.

The congressmen say the companies may be colluding to keep prices high and to freeze new companies and private-label cereal brands out of the market.

In response to complaints by congressmen and everyday consumers, The Arizone Republic convened a panel of cereal's best customers - kids.

As one panel member, 5-year-old Jarrad Pawlowski, put it, ``I like cereal for everything - breakfast, dessert and supper.''

The goal was to find out whether cereal lovers like Jarrad could tell the difference between cereal costing as much as 28 cents per ounce and similar kinds costing about 11 cents less per ounce.

Jarrad and other Solano students in Mary M. Graf's class dug in eagerly one recent morning. Each child sampled at least two bowls of cereal, one of his or her favorite name-brand cereal and a second containing the generic version of that same cereal.

Both versions of four different kinds of cereal were poured into bowls marked ``A'' or ``B'' in advance of the taste test so the kids wouldn't know which ones they were eating.

There were a few visual clues, though. General Mills' Cocoa Puffs were darker and shinier than Malt-O-Meal's lower-priced Coco-Roos, for example. Malt-O-Meal's Frosted Flakes - packaged in a plastic bag - appeared more powdery and broken up than the boxed Kellogg's Frosted Flakes.

The kids had identified ``anything chocolate,'' especially Cocoa Puffs, as their No. 1 cereal choice. Perhaps that explains why Cocoa Puffs was the only name-brand cereal in the test to be favored over the generic version.

The vote was six for General Mills Cocoa Puffs (purchased at a grocery store for $3.89 for almost 14 ounces, or 28.3 cents per ounce) to one for Malt-O-Meal Coco-Roos ($2.29 for the same size, or 16.7 cents per ounce).

``I always tell my mom and dad I want Cocoa Puffs,'' said Andrew Daluddung, 6, ``and they always say OK.''

But a few pupils reported changes in what fills their cereal bowls these mornings.

Michael Newell, 5, said he can't always get his favorite cereal, ``the squirrel kind. I have to pick out the kind my mother has coupons for.''

Six-year-old Arree Mitchell said his mother limits him to a list of cereals that she considers healthy: ``She likes me to have Kix or Cheerios.''

In the taste test, Malt-O-Meal's Toasty O's (15.5 cents per ounce) beat out General Mills' Cheerios (26.9 cents per ounce) by a vote of five to one. One student thought both kinds tasted the same.

Malt-O-Meal Frosted Flakes (12.5 cents per ounce) had four votes compared to one for Kellogg's Frosted Flakes (20.8 cents per ounce). Two kids said both versions tasted the same to them.

All four children tasting Kellogg's Froot Loops and Malt-O-Meal's Tootie Fruities said they liked both versions equally well. The first cost $4.25 for a 15-ounce box, or 28.3 cents per ounce. The second was $2.29, or 15.3 cents per ounce, for the same size package.

Store-brand cereals, although not included in the taste test, offer a midprice range alternative.

For at least one family, expensive cereals are a waste of money.

``I don't have cereal very often anymore,'' said Elise Upperman, 5. ``My little brother Casey eats it all. He's 4. He'll eat anything you give him. He'll even eat grass.'