GIS » Topics » U.S. Retail Change in Net Sales by Division

These excerpts taken from the GIS 10-K filed Jul 11, 2008.
U.S. Retail Change in Net Sales by Division
 
                 
    Fiscal 2008
    Fiscal 2007
 
    vs. 2007     vs. 2006  
Big G
    4.9 %     1.6 %
Meals
    5.1       5.2  
Pillsbury
    5.2       2.7  
Yoplait
    10.5       6.5  
Snacks
    12.3       10.3  
Baking Products
    8.5       2.5  
Small Planet Foods
    6.3       21.3  
Total
    6.8 %     4.4 %
 
 
 
In fiscal 2008, Big G cereals net sales grew 4.9 percent, driven by strong performance in core brands including Cheerios varieties and Fiber One cereals. Net sales for Meals grew by 5.1 percent led by Progresso ready-to-serve soups. Pillsbury net sales increased 5.2 percent led by Totino’s frozen pizza and hot snacks and Pillsbury refrigerated baked goods. Yoplait net sales grew 10.5 percent due to strong performance by Yoplait Light yogurt and new products including Yo-Plus and Fiber One yogurt. Net sales for Snacks grew 12.3 percent led by continued strong sales for Nature Valley grain snacks and Fiber One bars. Baking Products net sales grew 8.5 percent due to increases in Betty Crocker cookie mixes, Gold Medal flour, and the launch of Warm Delights Minis.
 
For fiscal 2007, Big G cereals net sales grew 1.6 percent as a result of new product launches such as Fruity Cheerios and Nature Valley cereals, and continued strong performance of the Cheerios franchise. Net sales for Meals grew 5.2 percent led by the introduction of Progresso reduced sodium soups and Hamburger Helper Microwave Singles and the continued strong performance of our other Hamburger Helper and Progresso offerings. Net sales for Pillsbury increased 2.7 percent as core refrigerated dough products, Totino’s Pizza Rolls pizza snacks, and Toaster Strudel pastries all generated solid growth. Yoplait net sales grew 6.5 percent due to strong performance by Yoplait Light, Go-GURT, and Yoplait Kids yogurt. Net sales for Snacks grew 10.3 percent led by continuing growth for Nature Valley granola bars and the introduction of Fiber One bars. Baking Products net sales grew 2.5 percent reflecting greater focus on product lines such as Bisquick baking mix and Warm Delights microwaveable desserts.
 
Segment operating profit of $2.0 billion in fiscal 2008 improved $74.6 million, or 3.9 percent, over fiscal 2007. Net price realization increased segment operating profit by $317.0 million and volume growth increased segment operating profit by $95.4 million.

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These were offset by increased supply chain input costs of $181.0 million, higher administrative costs, and an 11.7 percent increase in consumer marketing expense consistent with our brand-building strategy. Voluntary product recalls reduced segment operating profit by $24.0 million.
 
Segment operating profit of $1.9 billion in fiscal 2007 improved $95.2 million, or 5.3 percent, over fiscal 2006. Unit volume increased segment operating profit by $90.3 million, and inflation in ingredients (mostly grains and dairy), energy, and labor costs was more than offset by efficiency gains at our manufacturing facilities resulting from cost-saving capital projects, changes to product formulations, and continued actions to reduce low-turning products. These increases in segment operating profit were partially offset by a 5.7 percent increase in brand-building consumer marketing spending.
 
U.S. Retail
Change in Net Sales by Division



 






































































































































                 

 

 

Fiscal 2008


 

 

Fiscal 2007


 

 

 

vs. 2007

 

 

vs. 2006

 




Big G


 

 

4.9

%

 

 

1.6

%


Meals


 

 

5.1

 

 

 

5.2

 


Pillsbury


 

 

5.2

 

 

 

2.7

 


Yoplait


 

 

10.5

 

 

 

6.5

 


Snacks


 

 

12.3

 

 

 

10.3

 


Baking Products


 

 

8.5

 

 

 

2.5

 


Small Planet Foods


 

 

6.3

 

 

 

21.3

 




Total


 

 

6.8

%

 

 

4.4

%

 

 






 



In fiscal 2008, Big G cereals net sales grew 4.9 percent,
driven by strong performance in core brands including
Cheerios varieties and Fiber One cereals. Net
sales for Meals grew by 5.1 percent led by Progresso
ready-to-serve soups. Pillsbury net sales increased
5.2 percent led by Totino’s frozen pizza and
hot snacks and Pillsbury refrigerated baked goods.
Yoplait net sales grew 10.5 percent due to strong
performance by Yoplait Light yogurt and new products
including Yo-Plus and Fiber One yogurt. Net sales
for Snacks grew 12.3 percent led by continued strong sales
for Nature Valley grain snacks and Fiber One bars.
Baking Products net sales grew 8.5 percent due to increases
in Betty Crocker cookie mixes, Gold Medal flour,
and the launch of Warm Delights Minis.


 



For fiscal 2007, Big G cereals net sales grew 1.6 percent
as a result of new product launches such as Fruity Cheerios
and Nature Valley cereals, and continued strong
performance of the Cheerios franchise. Net sales for
Meals grew 5.2 percent led by the introduction of
Progresso reduced sodium soups and Hamburger Helper
Microwave Singles
and the continued strong performance of
our other Hamburger Helper and Progresso
offerings. Net sales for Pillsbury increased
2.7 percent as core refrigerated dough products,
Totino’s Pizza Rolls pizza snacks, and Toaster
Strudel
pastries all generated solid growth. Yoplait net
sales grew 6.5 percent due to strong performance by
Yoplait Light, Go-GURT, and Yoplait Kids yogurt.
Net sales for Snacks grew 10.3 percent led by continuing
growth for Nature Valley granola bars and the
introduction of Fiber One bars. Baking Products net sales
grew 2.5 percent reflecting greater focus on product lines
such as Bisquick baking mix and Warm Delights
microwaveable desserts.


 



Segment operating profit of $2.0 billion in fiscal 2008
improved $74.6 million, or 3.9 percent, over fiscal
2007. Net price realization increased segment operating profit
by $317.0 million and volume growth increased segment
operating profit by $95.4 million.















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These were offset by increased supply chain input costs of
$181.0 million, higher administrative costs, and an
11.7 percent increase in consumer marketing expense
consistent with our brand-building strategy. Voluntary product
recalls reduced segment operating profit by $24.0 million.


 



Segment operating profit of $1.9 billion in fiscal 2007
improved $95.2 million, or 5.3 percent, over fiscal
2006. Unit volume increased segment operating profit by
$90.3 million, and inflation in ingredients (mostly grains
and dairy), energy, and labor costs was more than offset by
efficiency gains at our manufacturing facilities resulting from
cost-saving capital projects, changes to product formulations,
and continued actions to reduce low-turning products. These
increases in segment operating profit were partially offset by a
5.7 percent increase in brand-building consumer marketing
spending.


 



This excerpt taken from the GIS 10-K filed Jul 26, 2007.

U.S. Retail Change in Net Sales by Division

    Fiscal 2007
vs. 2006
    Fiscal 2006
vs. 2005
 

Big G         +2 %     –1 %
Meals         +5       +7  
Pillsbury USA         +3       –1  
Yoplait         +6       +14  
Snacks         +10       +5  
Baking Products         +3       +6  
Small Planet Foods         +21       +27  

Total U.S. Retail         +4 %     +3 %

    In fiscal 2007, Big G cereals net sales grew 2 percent as a result of new product launches such as Fruity Cheerios and Nature Valley cereals, and continued strong performance of the Cheerios franchise. Net sales for the Meals division grew by 5 percent led by the introduction of Progresso reduced sodium soups and Hamburger Helper Microwave Singles, and the continued strong performance of our other Hamburger Helper and Progresso offerings. Net sales for Pillsbury USA increased 3 percent as core refrigerated dough products, Totino’s Pizza Rolls pizza snacks and Toaster Strudel pastries all generated solid growth. The Yoplait division’s net sales grew 6 percent primarily due to strong performance by Yoplait Light, Go-GURT, and Yoplait Kids yogurt. Net sales for the Snacks division grew 10 percent led by continuing growth for Nature Valley granola bars and the introduction of Fiber One bars. Baking Products net sales grew 3 percent reflecting greater focus on product lines such as Bisquick baking mix and Warm Delights microwaveable desserts.



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    For fiscal 2006, Big G cereals net sales declined 1 percent as our merchandising activity lagged competitors’ levels, particularly in the first half of the year. The Meals division’s net sales grew by 7 percent led by Progresso soup and Hamburger Helper. Pillsbury USA net sales declined 1 percent due to weakness in frozen breakfast items, frozen baked goods, and refrigerated cookies. Net sales for the Yoplait division grew 14 percent over fiscal 2005 primarily due to growth in established cup yogurt lines. Net sales for the Snacks division grew 5 percent led by Nature Valley granola bars and Chex Mix products. Baking Products net sales grew 6 percent reflecting the introduction of Warm Delights microwaveable desserts and strong performance during the holiday baking season.

    Operating profit of $1.9 billion in fiscal 2007 improved $95 million, or 5 percent, over fiscal 2006. Unit volume increased operating profit by $127 million, and inflation in ingredients (primarily grains and dairy), energy, and labor costs was more than offset by efficiency gains at our manufacturing facilities resulting from cost-saving capital projects, changes to product formulations, and continued actions to reduce low-turning products. These increases in operating profit were partially offset by $46 million of brand-building consumer marketing spending.

    Operating profit of $1.8 billion in fiscal 2006 improved $56 million, or 3 percent, over fiscal 2005. Unit volume increases accounted for approximately $89 million of improvement. Net pricing realization and product mix contributed $98 million. These factors exceeded manufacturing and distribution rate increases of $77 million, and increases in consumer marketing spending of $32 million.

INTERNATIONAL SEGMENT   In Canada, our major product categories are ready-to-eat cereals, shelf stable and frozen vegetables, dry dinners, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza snacks, and grain, fruit and savory snacks. In markets outside North America, our product categories include super-premium ice cream, grain snacks, shelf stable and frozen vegetables, dough products, and dry dinners. Our International segment also includes products manufactured in the United States for export internationally, primarily to the Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from export activities are reported in the region or country where the end customer is located. These international businesses are managed through 34 sales and marketing offices.

    The components of net sales growth are shown in the following table:

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