Forget the whole grains and natural colors, General Mills Inc (GIS) is using marshmallows and cinnamon to return to profit, Fox Business reported.
The 150-year-old packaged foods producer, under new CEO Jeffrey Harmening, plans to snap an eight-quarter streak of sales declines by getting back to basics with its Lucky Charms, Cinnamon Toast Crunch and Haagen Dazs brands.
Harmening's case in point: With Lucky Charms cereal, "when we were talking about no artificial colors and flavors...customers didn't really care that much but when we started talking about marshmallows again, the business started to grow," he told Fox. Lucky Charms sales are up 3% since adding more 'mallows.
90s classic Reese's Puffs have increased sales 7% this year and Cinnamon Toast Crunch, a holdout from the 80s, sold 6% more in the last three years. Haagen Dazs ice cream, made iconic in the 60s, boasts a billion-dollar industry overseas.
But since fresh and perishable foods sales have grown $400 million year-over-year and organic packaged goods sales have nearly doubled in the last five years, General Mills is hedging its bets. The company purchased Annie's Organics for $820 million in 2014.
General Mills stock traded up 0.4% to $57.51 Wednesday morning.
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