Homehttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/Businesshttps://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/General Mills raised prices for cereals and yoghurts. It works
General Mills raised prices for cereals and yoghurts. It works
The company, which also owns Wheaties, Lucky Charms and Annie, said that the actual sales volume of its products fell in North America and Europe during the quarter, although they grew in Asia.
But thanks to the increase in prices – as well as the increase in the cost of purchasing a food maker Blue Buffalo last year – total sales still increased by 8% compared to last year.
General Mills needed to raise prices to protect their profits, which was threatened by rising dairy inflation, Donald Mulligan, financial director for analysts on Wednesday. The company owns Yoplait, a manufacturer of yoghurts.
It also helps to have some brands that people are willing to pay at higher prices. Although general sales in the United States have declined, General Mills still has some well-known brands that are very popular among consumers. 1
CEO Jeffrey Harmening said during the conference that there is a high demand for Pillsbury products, El Paso packages, Annie's and Anne's fruit refreshments and the Fiber One bar
The food industry was tough for many companies. WMT and Target ( TGT ) together with the warehouse king Costco ( COST ) all put pressure on food companies to maintain low prices.
Meanwhile, consumers are increasingly avoiding processed and packaged products in favor of more fresh and organic products.
Kraft Heinz ( KHC ) for example, plunged more than 25% this year due to lower demand for cold slicers Oscar Mayer, Jell-O and Kraft Macaroni & Cheese. The company was so focused on cutting costs that it did not do the same as its competitors, including General Mills, to continue to manufacture new and updated brands.
The shares of the grain company Kellogg ( K ) decreased by about 4% this year.
General Mills is not insured from problems. Shares are down by about 5% from the spring of 2014.
But the company has found ways to put itself in a better position than its competitors. For example, General Mills has taken steps to earn an organic trend, especially with the acquisition of Annie in 2014. She also owns organic brands Cascadian Farm and Muir Glen, as well as Liberté yogurt.
organic products help her maintain price stability, despite the emergence of Amazon ( AMZN ) which now owns Whole Foods and has its own proprietary product service. General Mills ( GIS ) grew by 4% on Wednesday on solid results. Shares this year increased by 26%.