Skip to main content

People are buying less yogurt and soup, and it's hurting General Mills

General Mills is paying for falling behind with the Greek-style yogurt craze.
  • Author:
  • Updated:
    Original:

It's been a tough start to the day for General Mills, one of Minnesota's biggest employers, which has announced disappointing sales figures Tuesday morning.

The Golden Valley food giant confirmed that its second quarter sales were down 7 percent to $4.1 billion on last year, while its profits are down 9 percent to $482 million.

The reasons? Declining interest in yogurt and soups are among them, with General Mills reporting sluggish sales of its Yoplait and Progresso brands.

Sales of another Minnesota name, Pillsbury, affected the bottom line too, with refrigerated dough sales also down.

These struggling brands offset good performances by its Annie's and Larabar organic products, Old El Paso and Totino's pizza rolls that are enjoying a bit of a renaissance, not doubt helped in part by its excellent Twitter account.

The company has been making cost savings as well this past quarter, which will continue after announcing earlier this month it will be cutting 600 jobs in the new year.

The downturn in Yoplait is a blow for the company, which is in the process of revamping its yogurt department.

The Star Tribune reported in June that yogurt is the "new measuring stick" for General Mills, after a period in which the Golden Valley company has seen its market share decline from 30 percent in 2011 to 20 percent this year.

The newspaper notes the company was slow on the up-take when rivals like Dannon and upstarts like Chobani jumped on the trend for natural-style Greek yogurt, with General Mills now overhauling 60 percent of its yogurt portfolio as it plays catch-up.

The Street reports that General Mills' yogurt sales were down 17 percent in the second quarter.

The company's review of yogurt over the next 12 months will focus on "improving packaging and flavor options," the website notes.

Next Up

derek chauvin

$1.45M payout for correctional officers prevented from guarding Derek Chauvin

The officers were reportedly ordered to avoid Derek Chauvin while he was in jail.

DSD_6142

Palm Springs residents: Divert the Mississippi to solve our drought problems

Should the southwest have some of the Mississippi River?

Image from iOS (10)

Minneapolis tries to spruce up street barriers with motivational messages

Police said the barriers will be in place through the beginning of the fall.

BearTracks3

MnDOT debuts driverless shuttle in White Bear Lake

This is one of several self-driving pilot programs MnDOT is working on.

snow

Farmer almanacs release their 2022-23 winter forecasts for MN

November is right around the corner and one of the almanacs figures it'll be a cold and snowy month.

image

Minneapolis Police Department seeks authorization to use drones

A public hearing on the matter could be held this month.

Screen Shot 2022-08-08 at 12.50.25 PM

Minnesota Harvest apple farm to open under new owners this month

New food and attractions are in store for this season's fall fun.

Pixabay - water surface

22-year-old man found dead in central Minnesota lake

The man was reported missing and later found dead in the water near the lakeside residence.

Cabela's

Seven kids charged over shoplifting at Cabela's, 100 mph police chase

The youths were pursued in a a stolen car and almost hit a squad car, police say.

Screen Shot 2022-08-08 at 7.50.05 PM

Missing: 17-year-old Waite Park boy last seen July 3

Police say there is no reason to believe he's in danger.

Related

People are buying less yogurt and soup, and it's hurting General Mills

General Mills is paying for falling behind with the Greek-style yogurt craze.

Ready to say bonjour to French yogurt? General Mills hopes so

French is taking on Greek in a fight for yogurt supremacy.

General Mills is sexing up yogurt

A Frenchwoman with three lovers is the new face of Yoplait.

General Mills is sexing up yogurt

A Frenchwoman with three lovers is the new face of Yoplait.

General Mills wins award for their vegan soup line

Their Progresso vegan soups currently come in three different flavors.