General Mills pet treats and food sales decreased by 20% during the fourth quarter of 2021. By the end of the fourth quarter, on June 30, the sales had gone down to $444 million. Total industry pet food sales increased in the same period.
This fall in General Mills sales is not surprising when we take into consideration that this drop is analyzed in comparison to the same period in 2020.
There are two main factors for this change. During the lockdown in 2020, 21% of pet owners spent more money than needed on pets. Also, the fourth quarter of the fiscal year 2020 had one extra month.
In fact, the 2-year compound annual growth rate shows that if that one extra month was taken away from fiscal 2020, the results for the fourth quarter of the fiscal year 2021 would actually be 5% up.
As reported by General Mills, the pet food and snacks operating profit also went down by 24%, to $103 million in Q4 2021. The decline in numbers is due to higher production costs and lower volume sold.
General Mills pet food and snacks had a good fiscal year as a whole, and the net sales of the pet food and snacks increased by 2% to $1.73 billion. The 2-year compound annual growth rate shows that the annual net sales were up 10%.
In the 2021 fiscal year, General Mills acquired Tyson Foods’ Pet Treats Business for $1.2 billion. Their Blue Buffalo brand, one of the best dog food brands, is still going strong, with a double-digit increase in sales in 2021FY.
All the facts show that although the statistics are not as good as in 2020, General Mills’ pet food and treats sales are not actually in decline.