General Mills faces sales decline as demand for expensive brands wanes
General Mills, the maker of popular cereals like Cheerios and Lucky Charms, is experiencing a drop in sales as consumers seek cheaper alternatives and become more price-conscious. The pandemic initially boosted cereal sales as people ate breakfast at home, but as restrictions eased, demand for brand-name cereals diminished. General Mills also raised prices to offset supply chain issues and inflation. Sales of cheaper store brands have surged, while General Mills forecasts that sales may not return to normal until next summer. Consumers are also becoming more aware of "shrinkflation," where brands decrease product size while maintaining the same price.