General Mills acquires organic foods-maker Annie’s for with $820M
Food giant adds more natural and organic offerings with acquisition to meet changing consumer demands.
NEW YORK — Packaged food giant General Mills plans to buy Annie’s, the maker of rabbit-shaped mac and cheese, for $820 million, adding more natural and organic packaged offerings as consumers’ tastes change.
General Mills Inc., the company behind classic food brands such as Pillsbury dough, Progresso soups, Yoplait yogurts and Cheerios and Cinnamon Toast Crunch cereal, has been trying to cut cost and has tweaked its recipes as sales stagnate.
Sales have suffered as Greek yogurt and breakfast sandwiches became popular options for the morning meal.
Annie’s sales, on the other hand, grew 20& in its latest fiscal year. General Mills said Annie’s “convenient meals” and snacks businesses were particularly attractive. Annie’s also makes other pastas, frozen pizzas, and snacks like crackers and fruit snacks.
© 2014 The Canadian Press