(Reuters) -Pillsbury owner General Mills ( GIS ) forecast a sharp decline in annual sales and profit on Wednesday, hit by increased competition from cheaper private label brands amid still high cost of living in an uncertain macro environment.

Shares of the Minnesota-based company were down around 3% before the bell.

Consumers, who are burdened with the still high inflationary prices, are on the lookout for cheaper alternatives for their day-to-day needs despite General Mills ( GIS ) cutting prices of its products including refrigerated baked goods.

The company expects full-year organic sales to be down 1.5% to 2%, compared with a prior forecast of flat to up 1%.

General Mills ( GIS ) also sees full-year adjusted profit to decline in the range of 7% to 8%, compared with a prior forecast of down between 3% to 1%.