General Mills released its financial priorities for the fiscal year of 2018 on July 12 indicating the food company plans to focus on growth in cereal, yogurt, snacks, and natural and organic brands in the months ahead.
The firm’s four priorities for growth were listed as increasing global sales of cereals, Häagen Dazs, Old El Paso products, and snack bars; boost yogurt sales in the U.S.; and natural and organic foods throughout North America.
“We’ll remain laser-focused on knowing our consumer and what’s driving them,” said General Mills chief executive officer Jeff Harmening in a company press release. “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.”
An estimated 5% of General Mills’ sales will come from e-commerce channels by 2020, with the strongest growth coming from the U.S.
New cereal product changes like the debut of gluten-free cereals, the removal of artificial flavors and colors, and the use of whole grains have produced some “recent benefits” for the company, General Mills said. The firm will release new versions of popular cereal brands in globally.
The natural and organic product segment is expected to generate $1.5 billion in sales for General Mills by 2020. In the coming fiscal year, the company plans to invest in growth of these products in North America. Investments will also be made in Häagen Dazs, Old El Paso products, snack bars and yogurt.
Beyond the four priorities identified by the firm’s chief executive, General Mills said its foundation businesses of refrigerated dough, soup, and baking mixes will continue to provide “consistent profit” that will fund the initiatives for fiscal year 2018.