- General Mills will boost product flavors to attract price-conscious customers amid inflation.
- The company said it expects little sales growth in the next year.
- General Mills' shares were down 4.6% at closing on Wednesday after it reported earnings.
General Mills is turning up the flavor to attract price-conscious customers.
The snack and cereal maker said it will improve the taste of some of its biggest products to boost sales as inflation continues to hit consumers.
"In tough economic times, consumers can't afford to waste, so they're looking for great-tasting products they know their family will eat," CEO Jeff Harmening said on an earnings call on Wednesday.
"Pillsbury biscuits will be flakier, Annie's mac and cheese will be cheesier, and Betty Crocker fudge brownies will be fudgier," Harmening said.
Sales growth for the year ending May 25 fell 1%. General Mills predicted sales growth for the next fiscal year to be between zero and 1%, below what investors expected.
General Mills' shares were down 4.6% at closing on Wednesday after the company reported earnings.
Americans are feeling the burden of rising prices at grocery stores and food items in general. They're buying fewer things in supermarkets and at fast-food restaurants alike, CEOs in both industries have said in recent months.
Along with higher-flavor iterations, General Mills' CEO said that the company will also introduce value or bulk packs on some products and will spend more on coupons — over 20% more in the next six months.
As part of its attempt to remain top-of-mind, General Mills is working with NFL stars Travis and Jason Kelce and comedian-actor Pete Davidson. The company is also sponsoring Canadian, British, and Australian athletes in the upcoming Olympics.
General Mills is not the only company that is being forced to get creative.
Earlier this year, rival breakfast giant Kellogg's faced backlash for encouraging cash-strapped shoppers to eat cereal for dinner. Some people noted that even if they were trying to save on groceries, they would not opt for relatively expensive name brands like Kellogg's.