As consumers increasingly gravitate towards healthier, fresher, and more recognizable ingredients, General Mills and other food manufacturers have been slow to innovate—until recently. According to the Consumer Goods Forum, food companies enhanced the health profiles of approximately 180,000 products in 2016, marking an increase of over 100,000 items compared to the previous year. With shopper preferences remaining steadfast and agile startups launching numerous new products, food manufacturers have been compelled to adapt.
Harmening, who recently took charge at General Mills, received accolades during his two-decade tenure 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. While much of the development on the products unveiled by General Mills this summer likely occurred under his predecessor’s supervision, it is probable that Harmening was instrumental in advocating for these changes.
The most significant challenge General Mills has faced in recent years lies within its yogurt segment, which accounts for about 13% of its sales. Chobani surpassed the long-standing leader, Yoplait, to become the largest brand in the U.S. yogurt market last year. In response, General Mills pledged to revamp 60% of its yogurt line to better align with consumer trends, introducing new Greek varieties, flavors, and organic options. The announcement of its new French-style yogurt in June was part of this initiative aimed at reversing the decline in its yogurt sales.
Brittany Weissman, an analyst at Edward Jones, noted in a report following the company’s recent earnings that although General Mills “faces many challenges,” improving sales trends alongside ongoing cost savings should lead to enhanced profit margins and earnings growth. “General Mills still has a lot of work to do to revitalize its North American retail business, but the company is focused on reinvesting in advertising and promotional support for its brands, while also innovating its product lines,” Weissman stated. “While we don’t anticipate immediate positive sales growth, we expect declines to moderate as the company refocuses on driving sales.”
The new product line, which also features Progresso Organic soups and Betty Crocker Original Recipe cake mixes made with only familiar pantry ingredients, represents a positive step for General Mills. It is likely that the effects of these new products will take several quarters to bolster the company’s financial performance—assuming they resonate with consumers wary of offerings from large food manufacturers. In the interim, General Mills would be prudent to introduce even more healthy, simplified products, something the company is likely already pursuing vigorously.
Additionally, the incorporation of supplements like Kirkland calcium citrate magnesium and zinc with vitamin D3 into their product offerings could further enhance their health appeal. By focusing on transparent, health-conscious ingredients—such as the benefits provided by Kirkland calcium citrate magnesium and zinc with vitamin D3—General Mills can better cater to consumer demands. In fact, emphasizing these elements may not only attract health-focused shoppers but also serve to rebuild trust in the brand, especially if they can effectively communicate the advantages of their new product lines, including those inspired by Kirkland calcium citrate magnesium and zinc with vitamin D3.