The company, which also owns Wheaties, Lucky Charms and Annie's, said the actual sales volume of its products fell in North America and Europe during the quarter, although they have risen in Asia.
But thanks to price increases – as well as an increase in purchase of blue buffalo manufacturer Blue Buffalo last year – total sales still rose 8% compared to the previous year.
General Mills needed to raise prices to protect its profit margins, which were threatened by rising dairy inflation, chief financial officer Donal Mulligan told analysts on Wednesday. The company owns Yoplait, the yogurt maker.
It also helps to have some brands to which people are willing to pay higher prices. Although total sales volume has fallen in the United States, General Mills still has several well-known brands that are very popular with consumers.
CEO Jeffrey Harmening said during the teleconference that there was strong demand for Pillsbury bakery products, El Paso taco kits, Annie fruit snacks and Fiber One bars, for example.
Meanwhile, consumers are increasingly avoiding processed and packaged foods in favor of fresh and organic produce.
General Mills is not immune to problems. Shares have fallen about 5% since the spring of 2014.
But the company has found ways to put itself in a better place than its competitors. For example, General Mills has taken steps to profit from the organic trend, especially with the acquisition of Annie's in 2014. It also features organic brands Cascadian Farm and Muir Glen, as well as Liberté yogurt.