NORTH AMERICA—General Mills Inc. has announced a positive shift in its market share within the North American retail sector despite challenging sales figures during the first quarter of fiscal 2025.
The company reported a 4% increase in overall revenue, totalling US$4.9 billion, and a 6% rise in net income, showcasing resilience amidst a competitive landscape.
During an earnings call on September 19, CEO Jeffrey Harmening highlighted that market share trends improved in six of the top ten U.S. categories, indicating a recovery from previous downturns.
“In North American retail, our market share trends in the first quarter were improved over fiscal ’24,” Harmening stated, emphasising the company’s strategic focus on enhancing competitiveness and customer engagement.
The growth in market share is attributed to a combination of effective pricing strategies and increased food consumption at home.
Harmening noted that this aligns with consumer behaviour shifts, as more families eat at home, positively impacting sales in several categories.
“We are confident we can at least hold our share in our current categories because we have done it five out of the last six years,” he remarked.
Despite these gains, General Mills is not without its challenges. The North American retail segment reported net sales of US$3 billion, down 2% from the previous year.
The company is grappling with stranded overhead costs related to its recent yogurt divestiture and is also facing difficulties in international markets, particularly with its Häagen-Dazs brand in China.
Harmening acknowledged that “the situation in China remains challenging,” citing reduced consumer traffic as a significant factor.
To address these hurdles, General Mills is implementing a series of initiatives to foster growth and improve profitability.
The company’s strategy includes launching new products and enhancing advertising efforts to meet consumer demands better.
Dana McNabb, group president for North America Retail, explained that the company plans to diversify its product offerings while focusing on health benefits and taste preferences that resonate with today’s consumers.
“Parents today cannot afford to bring something into the house that the whole family is not going to like,” she said.
General Mills anticipates further improvements as it prepares for easier sales comparisons in the second quarter.
Executives expressed optimism about upcoming initiatives for their billion-dollar brands and are committed to enhancing customer service levels across all segments.
Harmening stated, “We expect to drive further improvement in our competitiveness and our top- and bottom-line growth for the remainder of the year.”
In addition to product innovation, General Mills focuses on strategic acquisitions, favouring smaller bolt-on purchases that align with its growth objectives.
This approach allows the company to remain agile and responsive to market dynamics while continuing to build on its core strengths.
General Mills’ recent performance reflects a concerted effort to adapt to changing consumer preferences and competitive pressures.
With a renewed focus on enhancing brand value and market presence, the company aims to solidify its position as a leader in the North American retail food sector while navigating ongoing domestic and international challenges.
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