General Mills cut its annual sales and profit forecasts on Wednesday, as the Pillsbury owner takes a hit from choppy demand for salty snacks and pet food in North America amid competition from private-label rivals.

General Mills has turned more pessimistic about its outlook for the rest of the fiscal year as the US food major reported a drop in third-quarter sales and volumes. A “slowdown” in snacking in the US was one factor cited today (19 March) as General Mills forecast a decline in organic sales over the course of the full financial year,

The Cheerios maker reported earnings on Wednesday that included lower guidance. It expects organic net sales to drop 2% to 1.5% for the year, compared to the previous range of flat to up 1%.