- A day after reporting disappointing earnings and pledging to cut costs by some $100 million, General Mills announced plans to close two factories and eliminate 600 jobs.
- One of the plants, in Methuen, MA, makes the Yoplait brand of yogurt. General Mills says it will shutter the plant by summer.
- The second factory, in Lodi, CA, makes cereal brands including Cinnamon Toast Crunch, Lucky Charms, and Honey Nut Cheerios. The company will announce the closing date of that plant after discussions with union officials.
When news broke that General Mills' profit had plunged 25%, no one was surprised to hear the company intended to cut costs. But it is surprising that General Mills has decided to close the Yoplait plant. Our sense was that General Mills saw yogurt's potential as an antidote to cereal's problems ... and that the company expected Yoplait sales to rise after the decision in June to remove aspartame.