• General Mills expects stable food pricing
General Mills Inc. chairman and CEO Ken Powell said food retail prices should remain stable over the next year, which means companies will have to rely on higher sales volume to see improved top line growth.
Powell was in New York Tuesday (July 9) for the company’s annual shareholder meeting.
The company will launch more than 200 new products in the first half of fiscal 2014, ranging from a new version of its Yoplait Greek yogurt to protein-rich varieties of Nature Valley cereal.
Powell doesn't see the need to cut prices of any of its products further this year. Last year, General Mills used "selective" price cuts, lowering prices on items like Yoplait's core yogurt cups.
"Our pricing for all of our core and major brands is in the zone that we want it to be," he said.
General Mills has a large sales office in Rogers and is a major supplier to Wal-Mart Stores Inc.
• Del Monte looks to sell canned business
Pinnacle Foods and Fresh Del Monte are among the companies considering offers for Del Monte Foods' canned foods business, a deal that could be worth more than $1.5 billion, according to media reports by Reuters.
Del Monte Foods has reportedly been exploring a sale of its slow-growing canned foods business as it looks to concentrate on its pet foods unit.
The companies are in the early stages of talks.
Del Monte Foods, no longer part of Fresh Del Monte, is owned by private equity partners KKR and Centerview, who purchased it for $5.3 billion in 2011.
In the fiscal year ended April 2013, Del Monte Foods posted net sales of $3.82 billion. The consumer foods business, which also includes Contadina tomatoes and College Inn broths, accounted for 48% of sales.
The remaining portion of its revenue came from its pet food business, which has brands such as 9 Lives cat food and Milk Bone dog biscuits.
Del Monte Foods is a supplier to Wal-Mart Stores Inc. with a local sales office in Bentonville.