General Mills’ Sales Crumble as Consumers Tighten Purse Strings
There’s a cereal killer on the loose, already targeting its first corporate victim. General Mills has slashed its fiscal 2025 outlook, now projecting an organic sales decline of 1.5% to 2% — a stark reversal from its previous forecast of flat to 1% growth. The gloomy forecast sent shares tumbling nearly 5% in premarket trading as economic uncertainty continues to gnaw at consumer spending, particularly in the snacking category.
- The Minneapolis-based food giant’s third-quarter sales dropped 5% to $4.84B, falling short of analysts’ projections, with volume declines hitting hardest in the North American retail segment.
- CEO Jeffrey Harmening acknowledged that while the company initially expected conditions to improve, “that hasn’t really been the case,” as “consumers are really looking for value.”
Fighting for shelf space: In response to the challenging environment, General Mills plans to dial up marketing investments and implement strategic price reductions on certain products like fruit snacks. The company’s struggles mirror broader industry tremors as packaged food makers grapple with cautious consumers already eating at home more frequently than pre-pandemic levels but becoming increasingly selective at the supermarket. With retailers like Walmart and Kroger trimming inventory and shoppers tightening their belts, food manufacturers face an uphill battle to keep their products in shopping carts — suggesting the pantry may be the next casualty of economic anxiety.
