General Mills Hikes Prices on Some Cereals, Baking Brands

October 25, 2010
/ Print / Reprints /
/ Text Size+
Big G is boosting the prices of some of its cereals and baking products, the clearest signal yet that food makers will pass some price pressure from higher commodity costs on to retailers and consumers.

General Mills, Inc., Minneapolis, says that it’s implementing what is described as “low single-digit” percentage price increases on select cereal brands and slightly higher increases on some baking products, such as flour and baking mixes, according to a spokesperson.

The price increase, which the company says will go into effect Nov. 15, will involve about one quarter of its cereal business in the United States. The company didn't disclose the names of the brands that will be affected. General Mills also is increasing the prices on some baking products, including flour and baking mixes. Those changes will on average amount to a mid-single-digit price hike on certain products in the baking category. Higher input costs necessitated the changes, the company says. It has been using productivity improvements and cost cuts to offset raw material pressures and will continue doing so, the spokesperson points out.

The move could pave the way for a wave of price increases. Such increases in 2008 drove profits and stocks higher for some industry players. Food companies have been trying to entice recession-weary shoppers with major promotional campaigns, but the more recent increases in commodity prices are pushing many of these companies to weigh raising prices.

The new price hikes would come at a time of widespread caution among consumers, who are still jittery about the pace of the economic recovery and are still trying to save rather than spend. And higher prices could put some retailers in a bind. Major supermarket operators, also cautious about the consumer recovery, will have to decide whether to boost shelf prices or sacrifice profits.

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.



Image Galleries

Blue Diamond Almonds Facility

Blue Diamond Almond’s new  processing facility in Turlock, CA.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 August

This month's publication of Snack Food & Wholesale Bakery takes a special look at Blue Diamond's growers and advanced technology, as well as a tour through the Blue Diamond production plant in Turlock, CA.

Table Of Contents Subscribe

School Lunches

Millions of children will soon be returning to school, lunchboxes in hand. What was your favorite lunchbox treat when you were a kid?
View Results Poll Archive


Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!


Facebook IconTwitter IconYoutube IconLinkedIn Icon