The news: General Mills’ decision to cut prices on roughly two-thirds of its North American portfolio wasn’t enough to reignite growth in fiscal Q3. The disappointing quarter reinforces the cautious outlook the company outlined last month, when it lowered full-year expectations.

The numbers:

• Organic North American retail sales fell 4% YoY in the period ended February 22, with volumes down 3 points. Pet and foodservice sales each declined 3%, with volume down 6 points in pet and 3 points in foodservice.
• Overall net sales dropped 8% to $4.4 billion, slightly ahead of the $4.3 billion analysts expected. That figure included a 6-percentage-point headwind from divestitures and acquisitions.
• Organic net sales declined 3%, worse than the 2.45% drop analysts had forecast.
• Adjusted earnings per share came in at 64 cents, down 37% on a constant-currency basis and below the 73 cents expected.

CEO Jeff Harmening said the company deliberately absorbed near-term pain to rebuild competitiveness, pointing to early gains in market share, household penetration, and baseline sales. But those indicators haven’t yet translated into sustained top-line growth. The results suggest that even broad price cuts across much of the portfolio haven’t been enough to meaningfully lift volumes among value-focused consumers.

Implications for consumer packaged goods brands: General Mills’ results show just how tough the environment has become for CPG companies. Legacy brands are being squeezed from both sides: Budget-conscious shoppers are trading down to private labels, while health-focused consumers are gravitating toward fresher, less-processed alternatives. That pressure is amplified by ongoing financial strain among lower- and middle-income households, which remain highly promotion-dependent. Eighty-six percent of US adults report being stressed by the price of groceries, according to an August poll by AP-NORC.

Structural headwinds add to those challenges. The company has pointed to lower population growth and the rising use of GLP-1 weight-loss drugs as a combined 0.5-percentage-point drag on category growth, making volume recovery harder.

To fight back, General Mills, Kraft Heinz, and others are leaning more heavily on innovation, especially around protein, fiber, and other “better-for-you” products. General Mills expects roughly 25% of its growth to come from new products, especially those tied to protein and fiber. The company is also adding protein to Honey Nut Cheerios, increasing fiber in Annie’s fruit snacks, and boosting both protein and fiber in Larabars.

To win, CPG brands have to juggle a tough balancing act. They need to offer real value for price-sensitive shoppers, meaningful health upgrades for wellness-focused consumers, and smart pricing that includes both affordable entry points and larger value sizes.