• by David Goetzl , December 18, 2009

General Mills boosted marketing spending by nearly 40% in its most recent fiscal quarter, with executives saying more increases are coming to back staples, such as Cheerios and new entrants like more Pillsbury frozen appetizers.

"Strong levels of advertising support" need to continue, Executive Vice President Jeff Rotsch said on a call with investors.

In the recent quarter ending Nov. 29, General Mills posted a 4% gain in U.S. retail sales to $2.9 billion. That came after a 10% growth in the same period a year ago. Company-wide operating profit was up 43% to $879 million.

Media spending was up 37% in the quarter -- and a double-digit increase is planned for the 12 months ending in late spring. Company executives cited a tie-in with NBC show "The Biggest Loser" as a worthwhile investment.

CFO Don Mulligan said on the call that "multicultural consumers" are a key target and digital marketing an emphasis.

The spending figures reflect General Mills' global outlays; the company said it is investing internationally. But 71% of its sales come from U.S. retail channels. Ad Age figures show the company spent $1.2 billion in ad dollars in 2008, making it the 34th largest domestic spender.

Rotsch, who oversees worldwide sales, said General Mills has a veteran sales staff, with an average of 11 years of experience. He said the U.S. retail business is changing. A decade ago, 75% of sales took place in supermarkets -- a figure now down to 60%, with mass merchandisers and other outlets growing.

Coming promotions include links for the Totino's brand with a Mountain Dew action sports tour and a new "Shrek" film.

New products nearing launch include a Wheaties Fuel line in January.