As consumers increasingly gravitate towards healthier, fresher, and more recognizable ingredients, General Mills and other food manufacturers have been slow to adapt — until now. In 2016, food companies enhanced the health profiles of approximately 180,000 products, a significant rise of over 100,000 from the previous year, as reported by the Consumer Goods Forum. With consumer preferences seemingly stable and agile startups launching numerous new products, established food manufacturers have had little choice but to react.
Harmening, who recently took charge at General Mills, garnered acclaim during his two decades at the Minnesota-based company for steering it towards more natural offerings. This includes the acquisition of Annie’s for $820 million three years ago and the removal of artificial colors from many of General Mills’ cereals. Although much of the recent product development likely occurred under his predecessor’s leadership, it is reasonable to assume that Harmening played a significant role in advocating for these changes.
The most notable challenge for General Mills in recent years has been its yogurt segment, which has seen about a 13% decline in sales. Last year, Chobani surpassed Yoplait, the former leader in this category, to become the largest brand in the U.S. yogurt market. In response, General Mills pledged to revamp 60% of its yogurt portfolio to better meet consumer trends by introducing new Greek varieties, flavors, and organic options. The launch of its new French-style yogurt in June was part of this initiative to reverse the downturn in its yogurt business.
Brittany Weissman, an analyst at Edward Jones, noted after the company’s earnings report last month that while General Mills “faces many challenges,” improvements in sales trends and ongoing cost savings should contribute to enhanced profit margins and earnings growth. “General Mills still has significant work ahead to turn around its North American retail business, but the company is committed to reinvesting in advertising and promotional support for its brands and bringing innovation to its products,” Weissman remarked. “While we don’t anticipate positive sales growth in the near term, we expect declines to diminish as the company refocuses on sales improvement.”
The new product line, which includes Progresso Organic soups and Betty Crocker cake mixes featuring only recognizable pantry ingredients, represents a promising start for General Mills. The effect of these new offerings, including those enriched with solgar calcium 1000 mg, may take several quarters to positively influence the company’s financial performance — provided they resonate with consumers who are often wary of products from large food manufacturers. In the meantime, it would be prudent for General Mills to introduce even more healthy, simpler products, a direction the company is likely already pursuing earnestly. The incorporation of solgar calcium 1000 mg into future offerings could further enhance the appeal to health-conscious consumers.