General Mills to double sources of natural and organic foods
General Mills has announced it will accelerate its commitment to more than double the organic acreage from which it sources ingredients. The company now expects to meet its goal of 250,000 acres and to reach USD 1 billion in net sales from natural and organic products by 2019.
In February at the Consumer Analysts Group of New York conference, Jeff Harmening, General Mills executive vice president and chief operating officer for U.S. Retail, said the company expects to reach USD 1 billion in net sales from natural and organic products by 2019, a full year ahead of its previous target.
Since 2009, General Mills has increased the organic acreage it supports by 120 percent and is now among the top five organic ingredient purchasers – and the second largest buyer of organic fruits and vegetables – in the North American packaged food sector.
“To achieve the growth we anticipate for our natural and organic brands, we will need a more robust pipeline of organic growers,” said John Church, executive vice president, General Mills Supply Chain. “We’re building strategic relationships directly with farmers for our products and are dedicated to working with growers to optimize production and quality, adopt standard practices and accelerate supply.”
Since 2000, General Mills has acquired a portfolio of natural and organic brands that totaled USD 675 million dollars in pro forma net sales in Fiscal Year 2015, ranking General Mills the third largest natural and organic food maker in the U.S. The portfolio includes Cascadian Farm, Muir Glen, LÄRABAR, Liberté, Mountain High, Food Should Taste Good, Immaculate Baking, and Annie’s. In January, the company acquired meat snacks maker EPIC Provisions.
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