Innovation And Right Message Are Key To Improved Cereal Sales, Says General Mills CEO

General Mills CEO Ken Powell says his company has done well in the battle against declining U.S. breakfast cereal sales, thanks to brand innovation and marketing execution. Powell says it’s especially important to get the marketing message right. The key to stabilizing sales of the Cheerios brand, according to Powell, was the refreshed message: Cheerios is healthy for you. Breakfast cereal sales have been steadily dropping for the last ten years, with consumption declining one percent a year. General Mills posted a two percent drop in U.S. sales during fiscal 2013 for its Big G cereals (i.e., Cheerios, Chex, Fiber One, Wheaties, etc.) though retail sales overall rose one percent.