USA – General Mills Inc. saw a slight decline in its North American retail business during the fiscal first quarter of 2025, with net sales falling by 2%, largely due to a 3% drop in volume that was partially offset by a 1% price/mix increase.
However, according to a company report, General Mills strengthened its market share in six of its top 10 U.S. categories, indicating positive momentum in key segments.
Sales were flat in the U.S. Meals & Solutions category, but down 5% in U.S. snacks and 3% in U.S. Morning Foods.
Meanwhile, the company’s Canadian sales saw growth, rising by 3% and up 6% when accounting for constant currency.
Jeffrey Harmening, chairman and CEO of General Mills, emphasized the company’s focus on improving competitiveness and market share across its major brands.
“We’re starting to see improvement in our competitiveness across our business,” Harmening said during a recent conference call with analysts.
He noted that the company is working to maintain this upward trajectory in the second quarter through merchandising events, customer service improvements, and seasonal activations with key brands like Pillsbury, Progresso, and Betty Crocker.
One product area expected to see progress is the fruit snacks category, which includes brands like Fruit Roll-Ups, Fruit by the Foot, and Gushers. General Mills has increased production capacity in this segment, which could provide a significant boost moving forward.
In response to an analyst’s query regarding General Mills’ pending US$2.1 billion sale of its North American yogurt business to Lactalis Group and Sodiaal, Harmening said that the divestiture is unlikely to impact the company’s cereal business, particularly in breakfast foods.
“There’s not a category strategy when it comes to yogurt and cereal,” he explained, downplaying any cross-category implications of the sale.
In a broader industry context, Nestlé SA continues to hold its position as the world’s most valuable food brand, according to a new report by Brand Finance.
Nestlé’s brand value decreased by 7%, but the company’s resilience and ability to adapt to consumer preferences have kept it at the top.
PepsiCo’s Lay’s brand ranked second with a 9% increase in brand value, while Chinese dairy manufacturer Yili ranked third.
Overall, the food and beverage sector saw a 4% decline in brand value year-over-year, with shifting consumer preferences toward smaller, personalized brands playing a significant role.
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