'We are not sure how costly the recall will be,' he said. The company said in a press release Monday that issues offloading flour at its facility in. DETROIT (WWJ/AP) General Mills is recalling 1.8 million boxes of Cheerios and Honey Nut Cheerios because the cereal is labeled gluten-free but it actually contains wheat. In a research note, JPMorgan analyst Ken Goldman estimated that the recall accounted for 1% of annual Cheerios production, an amount he called 'not insignificant.' General Mills is recalling 1.8 million boxes of Cheerios labeled 'gluten free' that may contain wheat. On its last earnings call in September, the company said that gluten-free Cheerios would be 'one of the largest merchandising events in our cereal business's history.' The company is transitioning five varieties of Cheerios to gluten-free and investing significantly in promoting the new products. Gluten-free cereal is one way General Mills is trying to bring people back to the category and take market share from competitors. In particular, the cereal business has proven problematic, as some US consumers have shifted to other breakfast alternatives. Over 1 million boxes of both Cheerios and Honey Nut Cheerios, that were produced at a factory in Lodi, California have been recalled, the Associated Press reports. General Mills, like others in the industry, has been changing its brands to appeal to consumers who are increasingly seeking less-processed, healthier food.

Cheerio recall 2015