Those Cheerios commercials must be working. General Mills (NYSE: GIS) reported on Wednesday that its profit for the first quarter of its fiscal year spiked 51%, thanks to a hefty dose of product demand and lower costs for ingredients. Of course, this beat the hell out of analyst expectations. And, it caused General Mills to boost its outlook for the year.

For the quarter, General Mills posted $420.6 million in earnings ($1.25 per share). For the same quarter a year ago, earnings reached only $278.5 million ($0.79 a share). The company's profit was a tad higher when an expense related to commodity positions is excluded, pushing earnings per share up to $1.28. Analysts had expected earnings of $1.03 a share.

When the J.M. Smucker Company (NYSE: SJM) presents at tomorrow's Lehman Brother Back-to-School Consumer Conference, look for the company to make prominent mention of the fact that its brand of peanut butter, Jif, was not involved in the peanut butter recall earlier this year. But Smucker certainly profited from the recall with increased peanut butter sales that resulted in a 40% or $19.6 million rise in 1Q 2008 operating income. Net sales for the quarter increased 17% to $561.5 million, and diluted EPS increased 42% to $0.71. Investors always like when earnings grow faster than sales.

Smucker recently completed the acquisition of Eagle Brands, maker of canned milk and other baking products. This is a good fit with other Smucker baking related products including Pillsbury and Crisco. During the first complete quarter following acquisition, Eagle Brands contributed $43.5 million to net sales. The company sold its manufacturing facility in Scotland as well as its nonbranded grain products in Canada in order to concentrate on domestic manufacturing and quality control.

The company is sticking with its previously mentioned FY 2008 guidance of sales growth of 8%, half from organic growth and half from acquisitions. Commodity costs will continue to increase for Smucker, as for its competition. Smucker needs to keep a tighter lid on administrative and selling expenses in light of costs increases, some of which cannot be passed on to consumers in the form of higher prices. Interest expense increased by $4 million due to Eagle Brands acquisition, so the company must monitor its debt load.

The stock is up almost 10% for the year, opening the year trading at $49.30, and currently trading at $54.86, with a dividend yield of 2.2%.

The J.M. Smucker Co. (NYSE: SJM) spooned out some healthy numbers for their first quarter 2008 ending July 31st. Benefiting, no doubt, from the disappearance of competing peanut butter brand Peter Pan from store shelves after it was found contaminated with salmonella, Smucker's brand Jif was one of the leading contributors in bringing home net income of $40.8 million, or $0.71 per share, well above analyst estimates of $0.65. The earnings were 42% above 2007 same quarter.

Almost half of the earnings, however, came from the recently-acquired Eagle brand businesses, on a volume of $43.5 million. Other Smuckers brands showing strong performance for the quarter were Crisco, Pillsbury and Uncrustables.

The results suggest the company is on track to continue its growth, up to $157 million on sales of $2.1 billion in 2007 and up 70% in shareholder return since 2002.

Looking forward, the company may find the Eagle brands impacted by sharply rising milk prices, and since approximately 20% of Smucker's sales are to Wal-Mart, that company's fortunes can affect Smucker's bottom line. Also, Peter Pan is resuming sales after a six-month hiatus, which could impact sales.

Nonetheless, with a strong stable of American staples and consistent recent success, Smucker is worth a look in a tumultuous market.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

If you like ice cream, you're probably already in one camp or the other. Few people claim to love Ben & Jerry's peacenik-y, tied-up-and-twisted flavors equally as well as the upper-crust uber-richness of Haagen-Dazs' highly-crafted premium varieties.

Oddly, though both have such strong brand identity and have created corporate cultures that seem pure and fiercely independent, both are tiny units of much larger (and unsexy) food companies. Ben & Jerry's was acquired by Unilever plc (ADR) (NYSE: UL) in 2000, while Haagen-Dazs was acquired by Pillsbury in 1983, now a unit of the quite pedantic General Mills, Inc. (NYSE: GIS).

How is it that two ice cream companies that share so many similarities -- the same size and shape package, the same commitment to quality of ingredients, the same fierce attention to (and careful culling of) flavor rosters, the same expectations (that you'll eat a good portion of the pint in one sitting, probably alone), the same prices -- be so different? To an outsider who understood nothing of the singular pleasure of dipping a spoon into a fresh-from-the-freezer pint of a favorite flavor, well, you'd think the brands were interchangeable; that a given consumer would choose one over the other based only on the weekly specials at one's neighborhood grocery store. Au contraire, or as they say in Vermont, no way man.