General Mills says more people eating at home

DAVOS, Switzerland (Reuters) - General Mills Inc and other food makers are benefiting from a sharp rise in home cooking in the United States and to a lesser extent in Western Europe, the head of the U.S. company said on Saturday.

"We are seeing some very interesting changes in consumer behavior as we plunge deeper into the recession," Chairman and Chief Executive Ken Powell told a panel at the annual meeting of the World Economic Forum.

Two or three years ago, around half of the $1 trillion spent by Americans each year on food went into the tills of restaurants and fast-food outlets.

But the fashion for eating away from home -- a strongly growing feature of the U.S. marketplace for the past 35 years -- has now been thrown into reverse.

"What we see now, over the last year and a half, is a very, very significant change in the direction of that trend," Powell said.

"Basically, consumers in North America are rediscovering the grocery store and cooking at home again, clearly to the benefit of some and the disbenefit of others as many restaurants really struggle in the U.S. right now."

General Mills earlier this month reported a rise in December sales, helped by stronger results at its Betty Crocker and Pillsbury baking units.

(Reporting by Ben Hirschler; Editing by Erica Billingham)