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 yogurt. It works
General Mills raised prices for cereals and yogurt. It works
The company, which also owns Wheaties, Lucky Charms and Annie's, said the actual volume of sales of its products fell to North America and Europe in the quarter, although they have risen in Asia.
But thanks to rising prices – as well as by the increase in purchase of pet food producer Blue Buffalo last year, overall sales have still risen by 8% compared to a year ago. , which was threatened by rising inflation in dairy products, Finance Director Donald Mulligan told analysts on Wednesday. The company owns Yoplait, a yoghurt maker.
It also helps to have some brands that people tend to pay for higher prices. Although the total sales volume has fallen into the United States, General Mills still has several well-known brands that are very popular among consumers. 1
CEO Geoffrey Harmons said during a conference call that there is a strong demand for Pilsner Urquell, El Paso, Annie and Fiber Bars
The food industry has been difficult for many companies. Target ( TGT ) together with a royal warehouse WMT ] have put pressure on food companies to keep prices low.
Meanwhile, consumers are increasingly avoiding processed and packaged foods in favor of fresh and organic products. KHC ) for example, dropped more than 25% this year due to the decline in demand for chilled Oscar winners Meyer, Jell-O and Kraft Macaroni & Cheese . The company was so focused on cost savings that did not do as much as competitors, including General Mills, to continue to produce new and upgraded brands.
The shares of the grain company Kellogg also dropped by about 4% this year.
General Mills is not immune to problems. Shares declined by about 5% from the spring of 2014.
But the company has found ways to put itself in a better place than its competitors. For example, General Mills has taken steps to redeem the environmental trend, notably with the acquisition of Annie's in 2014. It also owns the organic brands Cascadian Farm and Muir Glen as well as the Liberté yoghurt. % on Wednesday of solid results. The stock is now 26% this year.