A bit of indigestion at General Mills? After the Pillsbury merger was announced, rivals attacked key markets. ConAgra took on General Mills in prepared dinners, Sara Lee did the same in refrigerated dough, and Kellogg became the industry leader in cereal.
After the Pillsbury merger was announced, rivals attacked in some key markets. Most notably, Kellogg became the industry leader in breakfast cereal for the first time since 1999.
FAMISHED FOR NEW PRODUCTS
New products and innovative extensions shrank in the merger's aftermath. Typically, General Mills launches close to 25 new products in each quarter. In the fourth quarter there were only two.
STARVED FOR PROMOTIONS
Pillsbury reduced its marketing budget before the merger closed, and sales of such brands as Progresso soups and Pillsbury biscuits declined.