MINNEAPOLIS — General Mills Inc.'s fiscal first-quarter net income fell 14 percent, but its adjusted results beat Wall Street's expectations as revenue climbed on higher prices, solid demand and new products.
General Mills — the maker of Lucky Charms, Trix and Cocoa Puffs — plans to reduce the amount of sugar in its cereals marketed to children. "The reduction ... doesn't represent perfection but it represents improvement," said Kelly Brownell, director of the Rudd Center for Food Policy and Obesity at Yale University.
Retailers, who begrudgingly went along when food makers pushed up prices to recoup record-high costs, are flexing newfound muscle and demanding price cuts to match the recent steep retreat in ingredient costs. Food makers are resisting, saying the uncertain economy and volatile costs make price cuts unwise. But retailers aren't backing down.
Emily Fredrix and Sarah Skidmore
March 16, 2009
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