Retailers, consumers and prices
Check Out Line: General Mills’ new Cheerios a hit, but private label bites
Check out the power of new products to get shoppers going.
General Mills reported some pretty good results for its third quarter as shoppers gobbled up its new chocolate Cheerios cereal and the company got a boost from lower commodity costs.
But the sailing wasn’t entirely smooth. Sure, General Mills boosted advertising and media spending by 33 percent. Despite that effort to raise consumer awareness and its choco Cheerios hit, overall sales volume was flat.
Apparently, the economy and unemployment are still painful to most consumers, many of whom seem to still prefer cheaper private label items to branded foods.
Still, General Mills, which also makes Yoplait yogurt and Progresso soup, beat Wall Street’s forecast with a stronger than expected profit, and it even raised it profit outlook.
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