Brands are funny things. Everybody knows that they have value, but nobody is ever really sure just how much value they have. Looking across the packaged food sector these days, it seems like the companies with the winning brands are doing quite well for themselves. That is one possible explanation, then, for why General Mills (NYSE:GIS) continues to grow while its rivals struggle with weak volumes.
The Good News
To be sure, General Mills' fiscal first quarter results were nothing to be framed and put on the wall; sales growth was about 1.3%, as higher volumes fueled the growth. Cereals and yogurt were leaders in the U.S. retail business, helping to offset some weakness in the Pillsbury lines. Even if sub-2% growth is not a cause for celebration, General Mills does deserve praise and respect for continuing to grow at a time when rivals like Del Monte Foods (NYSE:DLM), Kellogg (NYSE:K) and ConAgra (NYSE:CAG) are having a much harder time of it.
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