Though cash strapped consumers have been shifting to cheaper private label foods in the current recession, General Mills is less susceptible than other food makers to this trend because there is less competition from store-brands in cereals, its biggest product category. Also, consumers usually purchase more General Mills items like Betty Crocker cake mixes and Hamburger Helper meal kits. General Mills is also betting on older consumers to help fuel its long-term growth plans. Usually older people prefer to eat more at home and as the U.S.population ages, more people should be eating at home. General Mills expects these people to eat foods like Progresso soup, Yoplait yogurt and Fiber One cereal. General Mills expects new products - like its Progresso High Fiber soups - to drive strong results in its U.S. retail business in the coming year as consumers eat more of their meals at home. The company relies on product innovation as one of its key growth strategies, and introduces 300-400 products annually, many of which are modified to accommodate local tastes.  During fiscal 2009, General Mills repurchased 20 million shares of common stock at an average price of $64.  General Mills (NYSE: GIS) announced late Monday that it is boosting its quarterly dividend rate by 9% or 4 cents a share to 47 cents per share.  Based on Monday's closing price, the dividend yield is 3.4% Turning to the balance sheet, the company has $937.30 million in cash and cash equivalents and $7.69 billion in debt. The stock currently trades at a forward P/E (fye 25-May-10) of 13.84 and PEG ratio (5 yr expected) of 1.91. Of the fifteen analysts who follow the stock, ten rate it a Strong Buy, one a Moderate Buy while three rate it a Hold. One analyst recommends Moderate Sell.

Constellation Brands (NYSE: STZ)

Constellation Brands Inc. operates in the beverage alcohol industry. It engages in the production and marketing of beverage alcohol brands in wine, spirits, and imported beer categories. Constellation Brands Inc. (NYSE: STZ)  reported on Wednesday that its fiscal first quarter net income tumbled 85% to $6.5  million, or 3 cents a share, from $44.6 million, or 20 cents a share, in the year ago quarter. Revenue dropped to $791.6 million, from $931.8 million. On an adjusted basis, the company earned 33 cents per share for the quarter ended May 31. Analysts on an\verage were lookings for earnings of 32 cents on revenue of $781 million. The company maintained its forecast for 2010 adjusted earnings of $1.60 to $1.70 per share.