Like ConAgra, Nurture Your Winners

OMAHA, Neb. (TheStreet) -- It's a cornerstone of business: To stay profitable, you have to increase sales. Unfortunately, that has been a big hurdle for companies this year.

Americans are sticking to budgets, refusing to buy what they don't need. The pain of penny-pinching has been felt by all companies, from small manufacturers to multinational conglomerates.

But two major food companies seem to be bucking that trend. Last week, General Mills(GIS Quote) said U.S. retail sales grew 6% in the quarter that ended in August, with operating profit up an impressive 21%. ConAgra Foods(CAG Quote), which specializes in packaged food, said sales to consumers fell 1% compared with a year earlier, but its profit shot up 34%. Sales from the companies' commercial divisions also declined as fewer people dined at the restaurants they supply.

How are these companies boosting their profits if their sales are dropping? In part, they can thank falling commodity prices. Last year, record wheat prices meant food manufacturers were paying more for raw materials. Lower prices this year have boosted profit margins significantly.

The companies are also benefitting from vigilant brand management. They've been putting money behind their strongest products, and ditching their weakest brands, in some cases.

Regardless of the size of your company, it's easy to spread yourself thin while searching for the next big thing. New product ideas might take up more attention than the old reliable standbys you've been selling for years. A high-maintenance new employee can require more of your time than a loyal worker who delivers consistently and without complaint. Are you giving your winners the attention they deserve?