General Mills sees boost in cereal sales for Q1
CHICAGO General Mills has reported booming first-quarter earnings, with a strong leader in sales of cereal. The company attributed its strong sales to an increase in people eating breakfast at home to save money, and General Mills’ successful cereal marketing strategies.
The maker of Cheerios, Lucky Charms, Trix and Wheaties, has said that increased efforts to market its breakfast cereal brands in the first quarter have paid off. Even though General Mills saw a slight decrease in its overall net earnings, due to drop in worth of some of the company’s commodity positions (down 4 percent to $279 million), not including those commodities, other total net earnings increased by 19 percent. Furthermore, the company reported that sales in the United States were up by 13 percent.
Reports showed that General Mills increased its advertising spending in the first quarter ended Aug. 24 by 17 percent. This increase came in addition to an 11 percent increase at the same time last year.
Diamond Foods completes buyout of Pop Secret
STOCKTON, Calif. Diamond Foods, famous for its brand of high-end almond snack, this week has announced the completion of its acquisition of Pop Secret and related debts.
Formerly a popcorn business under the General Mills, Inc. umbrella, Pop Secret was purchased by Diamond Foods for $190 million, according to reports. The sale was completed in part with a five-year, unsecured credit facility worth $250 million put in order by Bank of America, N.A. This deal replaces Pop Secret’s former arrangements pertaining to its credit facilities and other debts.
The president and chief executive officer of Diamond Foods, Michael Mendes, welcomed the addition of Pop Secret, expressing excitement that Diamond Foods would be growing its snack business into the microwave popcorn category.
Celestial Seasonings introduces teas to commemorate Breast Cancer Awareness Month
BOULDER, Colo. Celestial Seasonings teas has announced the release of two new specialty green teas in designer boxes to recognize Breast Cancer Awareness Month.
Cranberry pomegranate and tropical grapefruit green tea varieties are being released in boxes designed by artists Dagmar Fehlau and Heidi Kummli who are both breast cancer survivors, the company said. The new boxes are part of Celestial Seasonings’ ongoing support effort of the National Breast Cancer Foundation.
Both green tea flavors are available at U.S. grocery stores and natural foods markets. They retail for around $2.99 per 20-count box.