Dive Brief:
- General Mills' attempt to revive its Hamburger Helper brand have fallen short, according to the company's CEO.
- General Mills launched a major initiative last year to boost the brand -- adding sauces, emphasizing chicken, spending on marketing, etc. -- after it lost 20% of the market for dry mixes since 2010.
- The efforts of the last year follow a six-year initiative to make Hamburger Helper healthier by reducing the amount of sodium used.
Dive Insight:
The worst-performing unit at General Mills isn't cereal, it's the meals unit that houses Hamburger Helper. Sales for that unit fell 4% in the most recent fiscal year. And CEO Ken Powell put the blame solidly on Hamburger Helper, which he told the Minneapolis Star Tribune is "still a work in progress."
General Mills said last week that it intended to cut costs across the company. No doubt that's a wise move. But with Americans losing their taste for cereal, and with brands such as Hamburger Helper joining the ranks of all-but-forgotten foods from America's past like Johnnycake and Postum, investors will want to know if cost-cutting will be enough.