12/21/2023

General Mills Cereal Sales Drop as Demand for Pricey Brand Names Diminishes

Consumers are buying cheaper products

Breakfast foods maker General Mills, the brand behind familiar cereals, such as Cheerios, Lucky Charms and Wheaties, may not be a consumer favorite anymore as the company experiences slowing sales and increasing price hikes.

In the company's latest quarterly financial report, General Mills' CEO Jeff Harmening blamed the drop on "stronger-than-anticipated value-seeking behaviors," meaning that people are finding cheaper alternatives to high-priced cereals.

The pandemic turned around what had until then been a steady slide in cereal sales, as everyone ate breakfast at home. During 2020, General Mills reported a 5 percent boost in sales, but sales in 2021 fell 8.7 percent and nearly a further 4 percent last year.

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