Chex, a popular cereal brand of General Mills Inc. (GIS), recently introduced its seventh gluten free flavor, Vanilla Chex. A box of Vanilla Chex gluten-free cereal is offered at a retail price of $3.39. Other gluten free flavors include rice, corn, honey nut, chocolate, cinnamon and apple cinnamon.
With changing consumer preferences, there is a huge demand for new products that are both tasty and healthy. These products target the growing number of health conscious consumers who understand the importance of breakfast as the first meal of the day and prefer easily available nutritious food. These consumers are also conscious of the nutritional value of packaged food products.
There is also a growing demand for gluten-free food products in the market. The company is thus trying to target these health-conscious customers with its new Chex cereals.
In fact, the new Chex cereals are not only gluten free but also contain 10 grams of whole grain per serving and no artificial flavors or colors. It also contains vitamins, minerals and other nutrients, which makes it perfect for breakfast.
Overall, we are encouraged by General Mill's strong market share position in some leading food categories, its growing international presence, strategic acquisitions and focus on innovation and brand support. These growth initiatives combined with the cost saving efforts bode well for the company's long-term growth.
General Mills carries a Zacks Rank #3 (Hold).
Other companies in the consumer staples sector that warrant investor attention include B&G Foods Inc. (BGS), Boulder Brands, Inc. (BDBD) and Flowers Foods, Inc. (FLO). While B&G Foods and Boulder Brands carry a Zacks Rank #1 (Strong Buy), Flowers Foods carries a Zacks Rank #2 (Buy).
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