General Mills Inc. GIS +0.11% agreed to buy Annie's Inc. BNNY +0.07% for $820 million, betting that a bigger presence in the natural-and-organic foods aisles will energize a business sapped by flagging consumption of breakfast cereals and other traditional fare. The deal will add Annie's products ranging from macaroni and cheese to bunny-shaped cheddar snacks to General Mills' stable of well-known brands, which includes Cheerios and Chex cereals, Green Giant frozen vegetables, and Häagen-Dazs ice cream. It marks the latest effort by General Mills and other big food companies to tap into consumers' growing appetite for foods perceived as being made with more natural ingredients and fewer artificial additives.
Yes, since then General Mills has made an effort to appeal to the anti-GMO movement by changing the ingredients in Cheerios into a product that is almost completely free of GMOs. However, General Mills saw no increase in sales from this effort to win over the awake and aware population thus CEO Ken Powell has proclaimed they will not be offering anymore GMO-free products in the future. It goes to show that this corporation is much more concerned with their profits than the health of their consumers.
For those who dont care about funding parent companies and are merely concerned with the quality of the product, your answer is yet to be determined. In response to the decision Annies CEO, John Foraker had this to say:
We are excited about this strategic combination, which will enable Annies to expand the reach and breadth of our high quality, great tasting organic …
General Mills intends to fund the acquisition through available credit. It said it plans to launch a tender offer within 10 business days to purchase all shares outstanding of Annie's. The transaction is expected to close later this year, and General Mills expects it to add to its earnings in the first 12 months following completion.
Please Read this Article at NaturalBlaze.com