A Cost Analysis of General Mills

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GENERAL MILLS, INCORPORATED A Cost Accounting Analysis COMPANY BACKGROUND General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best…show more content…
The increased pricing on these items helped to offset the decline of other product lines such as Big G ready to eat cereals and the overall cereal category. The Bakeries and Foodservice segment’s net sales increased 6% compared the sectors net sales in 2010. This includes a 3% growth in sales to foodservice distributors and 11% increase in sales to convenience stores customers. The reason for the increase was due to net price realization and prices indexed to commodity markets. The International segment’s net sales increased 7% compared the sectors net sales in 2010. The increased sales in this sector were a result of a 5% growth in the European market, driven by increased sales in Häagen Dazs and Nature Valley in the United Kingdom, and Old El Paso in France and Switzerland. There was also an increase in the Asian/Pacific region with a 14% growth in sales driven by sales of Häagen -Dazs and Wanchai Ferry brands in China. Although 45% of Haagen-Dazs is sold in the US GSI does not control the product in the US. Nestle company retains rites to operate and sale in the United States, therefore GSI only profits from foreign sales of Haagen-Dazs. Looking towards 2012 GSI plans to continue to expand upon their health and nutrition products hoping to boost sales as the US consumer continues to focus on issues like childhood obesity and diabetes. Products to be released in FY12 include Fiber one 80 Calorie

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