Blog: Why soaring grain costs are helping General Mills
Dean Best | 19 March 2008
General Mills boss Ken Powell has every right to be upbeat today (19 March).
Powell, CEO of the US food giant, described the company’s third-quarter results as “terrific” – profits jumped 43%, with sales up 11.5%.
The company looks to be managing the rise in commodity costs better than some of its peers and its results beat Wall Street estimates.
However, a little-known fact is that, alongside such kitchen cabinet staples like Cheerios cereals, Nature Valley snacks and Pillsbury bread, General Mills also buys grain to sell to the rest of the industry.
With grain prices soaring, this part of the business has had a buoyant third-quarter.
"Grain inventories are usually immaterial, but with the recent run-up it's become material," Powell said on a conference call with analysts.
"We purchase more wheat and oats than we use. We have some excess inventory that we can sell into the market."
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- China "transition" drags on Danone Q3
- UK announces "action plan" to drive food exports
- CP Foods invests in UK foodservice firm Foodfellas
- PepsiCo sets 2025 nutrition, sustainability goals
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review