It's a tale of two worlds for General Mills: a developing one with countries like China and Brazil where sales are solid, and a developed one where business has been stagnant, particularly in the United States.
That was the message Tuesday as General Mills Inc. executives spoke at the Consumer Analyst Group of New York conference in Boca Raton, Fla.
"It's been a tough winter for U.S. consumers and for U.S. food industry sales," General Mills CEO Ken Powell said, kicking off the annual confab.
Indeed, "softer than expected" has become a watchword for sales at General Mills and other U.S. packaged food producers for the past several quarters. Powell noted the gloom that some stock industry analysts have for the industry in this country.
However, "we don't share the general pessimism about long-term growth," he said. Consumer spending is rising and the jobs picture is improving. "There's plenty of growth to be had, and it's our job to get it."
The packaged-food industry needs to boost its innovation, he said.
Shares of General Mills closed Tuesday at $49.68, down 21 cents.
While the United States still makes up the bulk of General Mills sales, the company has greatly expanded overseas in recent years. About one-third of its sales now come from outside this country. China has long been General Mills' biggest emerging market, where the company's Häagen-Dazs ice cream and Wanchai Ferry frozen meals are consumer staples.
