Americans who enjoy eating breakfast for dinners and college students who are too lazy to cook have helped increase cereal manufacturer General Mills Inc.’s fiscal second-quarter profits 50% higher.
General Mills, maker of Betty Crocker, Cheerios and Pillsbury products, has posted a number of strong quarters due to a drop in ingredient prices and a higher amount of consumers eating at home to save money during the recession.
This American Fortune 500 corporation continues to attract consumers with its food products, particularly its cereal selection. Cereal revenue has climbed 10% with stronger sales with Chex cereal varieties, Cheerios and Fibre 1.
There has also been an increase in snacks sales, with improvements for Fibre 1 and Nature Valley snack bars along with various fruit snacks.
With this rise of sales, General Mills has increased ad spending by 37%, in an effort to keep consumers aware of their cheaper products during the recession. It also plans to increase ad spending even more in the second half of the year in order to build on the brand awareness.
General Mills has reported a gain in earnings to reach $565.5 million US for a quarter ending in November. Sales have also increased 2% climbing to $4.08 billion, thanks to the better cereal and snack sales.