Hungry for cereal makers
By CHIP CUTTER
It's no surprise that Americans are eating more cereal during the recession. But what is significant is that they're sticking to their favorite brands, even if they cost more money.
Food makers, in general, are benefiting as prices for ingredients such as wheat and corn begin to stabilize after hitting record highs last year.
Kellogg, the world’s largest cereal maker, said this week that shoppers' loyalty to brands, such as Frosted Mini-Wheats and Fruit Loops, helped it boost third-quarter profit by 6 percent. The performance beat the predictions of analysts.
Other food makers have also reported strong sales recently.
General Mills, the maker of Cheerios and Lucky Charms, said in September that its fiscal first-quarter profit surged 51 percent as ingredient costs fell and demand for its products remained strong.
DATA: Thomson Reuters
Associated Press
