American yogurts’ sales have decreased in the face of competition from organic and Greek – style yogurt.
The maker of Cheerios cereal and Betty Crocker cake mix has been selling Yoplait yogurt in the U.S. since 1977. But as shoppers switch to thicker, low-carb Greek-style yogurt, the sweeter American varieties are falling out of favor.
The Minneapolis food giant said that while cereal sales improved, sales of its yogurt in the U.S. fell 7% in fiscal 2016, which ended in May—a sharp reversal from 5% growth the prior year.
Part of its problem is that General Mills doesn’t have a strong foothold in the fastest growing segments within yogurt—namely, organic. The company is aiming to fix that by offering more varieties of organic yogurt.
The company’s Chief Operating Officer has said he will also add yogurt smoothies to shelves, since drinkable yogurts are becoming more popular, and he is pushing new brands, such as Go Big yogurt pouches for children that outgrow Go-Gurt tubes from General Mills.
Still, Wall Street analysts are skeptical the company can win back customers that are looking for more natural and more nutritious yogurt.