- General Mills reported modest growth in its third quarter U.S. sales thanks to a recent acquisition but would otherwise have reported a loss, due in part to flat cereal sales. Consumers are shifting away from processed foods to healthier foods with better ingredients, which has boosted General Mills brands like its reconfigured Yoplait yogurt instead, according to Reuters.
- In response to its own weak cereal sales, Kellogg has confirmed it will close at least one of its U.S. cereal plants, though the company did not announce which specific plants or when it would make the decision.
- Despite the negative news surrounding cereal as of late, some brands remain popular for consumers, including General Mills' Cheerios leading the pack with more than twice as many sales dollars as the runner-up, Kellogg's Frosties (or Frosted Flakes), followed by Muesli and Kellogg's Special K, according to Euromonitor.
According to Fortune, General Mills could learn something from smaller food company entrepreneurs. Scrappy, younger food companies like Annie's, which General Mills acquired in October, has shown promise with 20% growth in the last fiscal year. Annie's built itself up using quality ingredients and unique advertising from the start, including once listing its the company founder's phone number right on product boxes, demonstrating a closeness to consumers often lost on larger companies, like General Mills.