General Mills Priorities Growing Cereal Globally

General Mills executives set its global priorities for fiscal 2018 at the company’s annual Investor Day event at the New York Stock Exchange.

General Mills CEO, Jeff Harmening, who transitioned to the role June 1, said the company remains committed to its Consumer First strategy and will look to global prioritization to unlock growth opportunities including opportunities in e-commerce.

“We’ll remain laser-focused on knowing our consumer and what’s driving them,” said Harmening. “While the biggest shift in our industry in the last five years was driven by changing consumer food values, I believe the most significant change that will impact the next five years will be in how consumers get their food, driven by the rapid acceleration of e-commerce. We see this as an exciting opportunity for General Mills.”

E-commerce represents about 1.5% of the company’s total sales in the U.S. today. The company expects this number to grow to 5% by fiscal year 2020. It also continues to see strong double-digit growth ahead for its global e-commerce business, led by the U.S.

Harmening identified four key priorities for fiscal 2018 as the company works to improve its topline growth trends: 

• Grow cereal globally, including the company’s joint venture Cereal Partners Worldwide;
• Improve its U.S. Yogurt business through innovation;
• Invest in differential growth opportunities including the company’s global Häagen Dazs and Old El Paso businesses, global snack bars platform, and its portfolio of Natural and Organic brands across North America;
• Manage its foundation businesses with appropriate investment.

The company has seen recent benefits from both wellness and taste improvements in cereal. Successful wellness initiatives have included gluten-free news, the removal of artificial flavors and colors, and whole grain messaging. The company will deliver new cereals across U.S., brands including new varieties of its “Toast Crunch” line, new Blueberry Chex and Banana Nut Cheerios. Global new products including Nesquik and Cheerios all-family granolas will also be part of GM’s offering, as well as its recent global innovations like Lion Wild.

The global snack bar category is another global growth area with brands including Nature Valley, Fiber One and LÄRABAR. The company will expand much of its U.S. innovation success to Europe, with Nature Valley Nut Butter Biscuits and growing the Fiber One franchise.