One of the biggest food companies in America and Minneapolis-based, General Mills Incorporated, has been recently reported to have their annual sales forecast cut due to some changes occurred in the economy. They’ve highlighted that the demands in their products were not the same as before and this is one of the reasons as to why the growth in the market seems to be slower.
As they have seen in their reports on the previous quarters, the sales of their products have been beaten by some other innovative breakfast meals offered by some established companies. This is what they have seen to be one of the reasons on why the profit rate seems to decline.
When Ken Powell, Chief Executive of the company, has been interviewed last September, he pointed out that the sales of soft goods, such as foods and other consumables, were declined due to some changes in the retail environment.
Some of the well known brands offered by the company, including the popular frozen and canned vegetables called as Green Giant and Pillsburry’s refrigerated products, were just one of the reasons for sales drop. The slow sales growth does not just affect the sales in the country, but it also includes the sales in the international markets where the company is also operating.
As part of their strategic plan to increase the declining sales, the company has decided to get organic meals producer Annie’s Inc and also introduced some healthier morning snacks as they were expecting that these innovations will be successful.
As they have this plan started, they were expecting to have their sales grow in the next incoming years.