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WASHINGTON, D.C. – New earnings data released today by General Mills reveals that the company saw its quarterly net income increase 11% to $660 million and spent $934 million on dividends this fiscal year after price hikes of up to 20% on hundreds of items in January. The food giant’s massive profits reaffirm ongoing research from Accountable.US exposing how major companies in the food industry are using the pandemic as an excuse to increase their wealth and line their shareholders’ pockets at the expense of working families. 

In today’s earnings, General Mills said the quiet part out loud, admitting to expecting strong fourth quarter numbers thanks to “ongoing elevated consumer demand for food at home.” In addition, General Mills’ pet segment saw net sales soar 28% to $1.65 billion driven primarily by “favorable net price realization.”  

“

General Mills acts is if the company had no choice but to juice prices on hundreds of products by up to 20 percent. The $660 million in quarterly net income and $1.48 billion the company was able to reward shareholders this year would suggest otherwise. It appears the company is among the many industries taking advantage of the pandemic – choosing to pad their profits rather than keeping prices reasonable for consumers."

Kyle Herrig, president of Accountable.US

SEE MORE EXAMPLES OF PANDEMIC PROFITEERING IN OUR GROCERY STORES:  

  • In its earnings data, Hormel Foods — which planned on hiking prices not once, but twice, in 2021 — touted “its fifth consecutive quarter of record net sales” and $132 million in first quarter shareholder dividends. The company is doing so well that it completed a $3.35 billion acquisition of Kraft Heinz’s Planters peanuts — the largest acquisition in the company’s history. CEO Jim Snee even admitted that this acquisition was a “catalyst for earnings growth.”

  • After Mondelez — whose brands include Oreo, Ritz, Wheat Thins, and Triscuits — saw its gross profit increase by over $800 million in 2021, the company still jacked up prices by up to 7% in January 2022 and is leaving the door open to raising them again despite spending nearly $4 billion on stock buybacks and dividends in 2021.
     
  • In December 2021, Kroger‘s Chairman and CEO said the company was “in a position of strength“ as the grocery chain reported a third quarter operating profit of $868 million and spent $297 million on quarterly stock buybacks just months after it said it was “‘passing along higher cost to the customer.'”
     
  • In January 2022, Albertsons Companies—owner of several major grocery chains, including Safeway— still chose to hike prices on consumers despite “better-than-expected results,” with its quarterly net income increasing 243% year-over year. 
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