Cheerios Maker Tells 'gluten Free' Label Drawing Clients
General Mills says Cheerio marketings rose 3 percent after it began labeling the boxes as Gluten Free and promoted the altered in September.( AP)
Can stamping boxes of Cheerio with the words Gluten Free help resuscitate marketings?
General Mills Inc. said Thursday its total cereal marketings in the U.S. declined 5 percentage in the most recent one-quarter, hurt by Americans ongoing move away from cereal and a pullback in promotions by retailers. But while examining sales of just full-priced boxes of cereal a figure the company says reflects client demand it said Cheerios marketings rose 3 percent after it began labeling the boxes as Gluten Free and promoted the altered in September.
Sales dipped merely after General Mills announced a recall of 1.8 million boxes of Cheerio with the new label in early October, quoting a mix-up that led to wheat being introduced into its system, the company said.
The push to renew interest in Cheerios, which was invented in 1941, comes as big food makers try to reposition some of their best known brands to suit predominating tendencies. PepsiCo Inc ., for example, plans to start labeling Tropicana orange juices as non-GMO early next year. The company doesnt need to change the formula since there are no genetically modified oranges, but it says the label is in response to a growing interest in foods without genetically modified ingredients.
Kellogg Co ., meanwhile, has been trying to recast its Special K line as a more nourishing cereal with ingredients like quinoa. That change reflects the fading popularity of foods marketed mainly as weight loss options.
As for General Mills, the Minneapolis company had already observed success in recasting Chex as gluten-free in recent years and is now starting to market Lucky Charms as gluten-free as well, CEO Ken Powell said in a phone interview.
Since Cheerio, Chex and Lucky Charms dont contain wheat, General Mills didnt have to reformulate the cereals to label them as gluten-free. But the company said it changed its methods to ensure wheat isnt introduced into the manufacturing process. Powell said more than half the companys cereals now qualify as gluten-free.
General Mills, which counts on cereal for 20 percentage of its marketings, is also chasing another big trend with Cheerios Protein. Last month, the Center for Science in the Public Interest sued General Mills, telling the cereal is misleading because it only has marginally more protein than regular Cheerio, when compared by weight, and far more sugar. The group notes the serving sizing listed on boxes of Cheerios Protein is larger, hence building it seem like it has more protein.
General Mills said the bigger serving sizing for Cheerios Protein was determined in accordance with the Food and Drug Administrations regulations, which factors in density. The company said it stands by the labeling of the cereal.