Lower Prices, Smaller Boxes for Cheerios, Lucky Charms, Wheaties and Total

Higher energy costs and world wheat shortages are forcing General Mills to make changes with several of their cereal lines.

The company said consumers will actually see lower prices per box, but boxes for well-known brands such as Cheerios, Wheaties and Total will be smaller. The new prices go into effect June 25.

The maker of Wheaties and Lucky Charms has been looking for a way to boost profits on its cereals. While General Mills sold as much cereal during its most recent quarter as it did in the same period a year ago, lower prices because of promotions narrowed profits. Profits have been squeezed by higher prices for fuel and ingredients such as oats.

"Input costs are definitely a factor" in the price increase, company spokesman Forsythe said. "Grain and energy costs have increased. Most of our competitors in the cereal category have already raised prices, some months ago."

General Mills competitor Kellogg said in April that it had raised prices by 5 percent based on weight.

Forsythe said General Mills cereals often appeared more expensive on the shelf because of their larger box sizes, and the switch to smaller boxes will make them appear more competitive, even with the increased price per ounce.