USA – General Mills, a leading player in the food industry, has taken significant steps to regain its momentum and drive growth as it navigates a challenging market landscape.

CEO Jeffrey L. Harmening, during a recent presentation at the Deutsche Bank dbAccess Global Consumer Conference in Paris, emphasized the company’s renewed focus on productivity and holistic margin management as it transitions from fiscal 2023 into fiscal 2024.

“Over the last few years, we have been spending most of our time just trying to get product to market,” Harmening noted, indicating that the company is now poised to enhance its operational efficiency.

This shift is backed by a recovery in supply chain operations, which were severely impacted during the pandemic.

Harmening revealed that General Mills is “clawing” its way back to normalcy, stating, “Our service levels are currently in the 90s, including pet food.”

This improvement allows the company to reduce costs that had previously burdened its operations.

He explained, “During the pandemic, we incurred a lot of cost because our supply chain wasn’t operating as efficiently as it could.”

In addition to operational improvements, General Mills is also adapting its product offerings to meet changing consumer preferences.

Dana McNabb, Group President for North America Retail, highlighted the company’s strategy to generate organic net sales growth between 2% and 3% in the coming years.

“We are putting the right things in the marketplace and we are focused on progress and getting better quarter after quarter,” she stated.

This approach includes responding to shifts in consumer behaviour, such as an increase in home dining, which has contributed to a resurgence in several product categories.

Despite facing increased competition from private labels and smaller brands, General Mills has seen positive trends in its market share.

McNabb reported that the company improved its pound share in seven of its ten largest categories.

“Before the pandemic, our categories were growing in the 2% to 3% range. Now, they are back about where they were pre-pandemic,” Harmening remarked, underscoring the company’s commitment to maintaining its competitive edge.

General Mills plans to enhance its marketing strategies significantly to bolster its market position further.

The company has increased its marketing spend by 43% over the past five years, reflecting its commitment to brand innovation and consumer engagement.

Harmening noted, “In times of volatility and even in tough economic times, the companies that invest in their business are the ones that get ahead.” This marketing investment is expected to improve volume across all categories in the company’s portfolio.

Harmening stressed the importance of focusing on key categories, geographic areas, and environmental, social, and governance (ESG) initiatives. “Prioritization is critical,” he stated, highlighting that this focus will be just as vital in the coming year as it has been.

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