General Mills, a popular snack and cereal maker, has announced plans to enhance the taste of some of its most popular products in order to increase sales during a time when inflation is affecting consumers. CEO Jeff Harmening stated that in challenging economic times, consumers are seeking delicious, high-quality products that their families will enjoy.
Harmening shared that Pillsbury biscuits will become flakier, Annie’s mac and cheese will be cheesier, and Betty Crocker fudge brownies will be even more fudgy. Despite a 1% decrease in sales growth for the year ending May 25, General Mills is forecasting sales growth of zero to 1% for the next fiscal year, which is below expectations.
As the cost of groceries and food items rises, consumers are making fewer purchases at both supermarkets and fast-food establishments. To address this shift in purchasing behavior, General Mills plans to offer bulk or value packs of some products and increase coupon spending by more than 20% in the coming months.
To engage consumers and promote its brand, General Mills has partnered with NFL stars Travis and Jason Kelce, as well as comedian-actor Pete Davidson. Additionally, the company is sponsoring athletes from Canada, Britain, and Australia in the upcoming Olympics. Reflecting on the competitive market landscape, General Mills is focused on remaining innovative and relevant to consumers.
In a similar effort to adapt to changing consumer behaviors, rival breakfast brand Kellogg’s faced criticism earlier this year for suggesting that consumers should eat cereal for dinner to save money. Some shoppers expressed hesitation in choosing more expensive name-brand cereals like Kellogg’s, even when trying to trim their grocery budgets.