General Mills (GIS) , which owns popular food brands such as Lucky Charms, Cheerios, and Betty Crocker, recently suffered a significant dip in sales.
In its latest earnings report, General Mills revealed that net sales declined by 5% year-over-year during the third quarter of fiscal year 2025. Specifically in the U.S., retail sales shrank by 7%, with morning foods, snacks, meals and baking solutions all facing a decrease in sales.
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Amid the decline in sales, General Mills generated an operating profit (the company’s profit after expenses) of $891 million, which is 2% lower than what it earned during the same quarter in 2023.
Related: Cheerios, Lucky Charms owner sounds alarm on growing problem
During an earnings call on March 19, General Mills CEO Jeffrey Harmening said consumers have become more “value conscious,” and they are scaling back spending on discretionary items at the grocery store.
General Mills faces another major threat to sales
Amid this growing threat to sales, General Mills now has another significant problem that can also harm its profits.
The People’s Union USA, a group that recently organized seven-day boycotts of Amazon, Walmart, and Nestlé, has just chosen General Mills as its next target.
General Mills is one of the latest companies to face a consumer boycott.
Image source: Justin Sullivan/Getty Images
The group’s General Mills boycott officially kicked off on April 21 and will conclude on April 28.Â
In a recent Instagram post, The People’s Union USA founder John Schwarz said one reason the group decided to boycott the company was because of the alleged “toxic ingredients” General Mills puts in its food products.
“General Mills represents everything that is wrong with the corporate grip on our food system,” said Schwarz. “This is a company that owns half the cereal aisle, floods our stores with ultra-processed garbage and targets our children with sugary poison. They have spent millions lobbying against GMO transparency and better food labeling, just so we stay blind to what we’re really feeding our families.”
Related: General Mills faces lawsuit alleging egregious incidents of racism
Some of the ingredients found in General Mills’ food products include seed oils such as canola, sunflower, and palm, which have recently drawn scrutiny from consumers for being overly processed and contributing to inflammation in the body.
Despite General Mills’ previous efforts to remove artificial flavors and colors from almost all of its cereals, a number of its products contain synthetic dyes such as Blue 1, Red 40, Yellow 6, etc.
These dyes, which are commonly found in processed foods, have come under fire for being linked to health issues such as cancer and hyperactivity in children, despite being approved by the U.S. Food and Drug Administration.
General Mills accused of harmful practices
Schwarz also alleged that General Mills dodges “their fair share of taxes” and exploits its workers, prioritizing profits over people.
“This company has exploited farmers, drained our soils with unethical farming, and done nothing to fix their role in the plastic pollution crisis,” said Schwarz. “Their executives rake in millions while factory workers struggle to make ends meet. General Mills isn’t just a cereal company. They are a symbol of unchecked corporate power, one that answers to profits, not people.”
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His comments come after General Mills investors last September voted against a proposal from a group of its shareholders that called on the company to reduce its use of plastic packaging.Â
The company’s investors also knocked down a shareholder proposal that aimed to gather additional details on how it is decreasing pesticide use in its farming.
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The People’s Union USA is encouraging consumers to boycott all of the company’s food products in categories such as snacks, frozen food, breakfast and cereals, and pet food.
The boycott follows General Mills’ expected continuation of declining sales during the first few months of this year.
In its latest earnings report, the company predicted that its organic net sales for the fourth quarter of fiscal year 2025 will decline by 1.5% to 2% after previously expecting sales to be flat or up by 1%. The company also expects its operating profit to shrink by 7% to 8%.
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