Cereal Prices Up, Profits Down
Some depressing quotes:
“General Mills recently announced that it will raise prices on about a fourth of its cereals in November because of higher grain prices.” — John Ewoldt, Minneapolis Star Tribune.
“Reduced output of wheat in the CIS (Commonwealth of Independent States) countries due to drought, as well as smaller crops in the European Union and North Africa, account for the decline [global cereal production for 2010-11.]” — Gargi Parsai, The Hindu.
“Kellogg said retail cereal sales in North America skidded 6% — on top of a 13% drop in the quarter ended July 3. … Third-quarter sales fell in North America, Europe and Latin America, while Asia-Pacific saw a gain. Operating profit fell in all four regions.” — Matt Andrejczak, MarketWatch.
My suspicion: this all started when General Mills discontinued Kaboom earlier this year.
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