US food giant General Mills has started construction work on a distribution centre in the US city of Atlanta.

The purchase of the 130-acre property was closed on Friday and the US$42m project is set to create 112 jobs.

Earlier this week, General Mills upped its 2009 full-year earnings per share guidance on the back of a good operating performance and lower fourth-quarter tax rates.

President and CEO Ken Powell also told investors in Paris that General Mills, which owns brands including Cheerios and Betty Crocker, was cashing in on key food consumption trends to drive growth.