General Mills Will Invest in Marketing to Boost Yogurt Business
- Company says it didn’t do enough to make prices competitive
- Total sales have dropped for seven straight quarters
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General Mills Inc., the food giant that has posted declining revenue for seven straight quarters, will invest in marketing and promotions as it tries to reignite growth in its struggling U.S. yogurt unit.
Yogurt sales in the U.S. fell 20 percent in the third quarter and Minneapolis-based General Mills pinned the decline mostly on high prices relative to its competitors. The company has been cutting costs to boost profit margins. And in the push to slash expenses, it reduced spending on promotions in its key yogurt unit. It has faced similar issues with its Progresso and Pillsbury brands.