Milling & Baking News - July 4, 2017 - 18

Financial Results X

New c.e.o. maps out General Mills
plans to reignite sales growth

several global platforms where it
has good top-line momentum already. The platforms include Häagen-Dazs ice cream; snack bars,
primarily under the Nature Valley,
Fiber One and Larabar brands; Old
El Paso; and natural and organic
brands in North America.
Collectively, the platforms represent about $4 billion in net sales,
and Mr. Harmening said the company expects "great prospects for
growth" in fiscal 2018.
In the snack bar category, General

and our large gluten-free portfolio.
happy with those results, but it's For the digital component, we're usclear some actions did not go ac- ing precision targeting to tailor our
messages to individual consumers,
cording to plan.
"We've pulled back two foreign with an emphasis on Hispanic famiinvestments in some key categories, lies and empty-nesters."
Second, General Mills expects to
and our overall execution was not up
to our normal standards. Our sales improve its U.S. Yogurt performance
through fundamental innovation.
and profits suffered as a result."
Looking forward to fiscal 2018, An example of the company's efforts
Mr. Harmening said General Mills'
top priority is to make significant
'Our plans call for investment and product
strides toward returning the business to sustainable top-line growth.
news and innovation to accelerate growth,
"Our plans call for investment and
for businesses where we have positive
product news and innovation to acmomentum and to improve those that are
celerate growth, for businesses where
we have positive momentum and to
underperforming.'
improve those that are underperform- Jeffrey L. Harmening, General Mills, Inc.
ing," he said. "We'll also increase investment in capabilities like e-commerce and strategic revenue manage- includes the launch of a new line of Mills intends to increase its innovament, which are critical for growth French-style yogurt called Oui by tion levels on Nature Valley, with
Yoplait. The recipe is inspired by plans to launch more than 20 new
today and will be in the future."
Operating profit within the com- Yoplait Saveur d'Autrefois, a yo- items, Mr. Harmening said.
"We're getting behind coconut, one
pany's North America Retail busi- gurt General Mills has sold only in
ness fell 2% during fiscal 2017 to France for 20 years. Oui by Yoplait of the fast-growing flavors in snack
$2,303.6 million from $2,351.2 mil- is made by pouring ingredients into bars, with the launch of toasted colion, while sales in the unit declined individual glass pots that set af- conut Sweet & Salty nut bars and
nearly 7% to $10,196.9 million from ter eight hours, producing a thick coconut butter Nature Valley Biscuits
and creamy yogurt, the company sandwiches," he said.
$10,936.6 million.
The fourth and final
In the company's Conglobal priority in place
venience Stores & Foodfor fiscal 2018 involves
service business, operatmanaging
foundation
ing profit totaled $401.2
brands with appropriate
million in fiscal 2017, up
levels of investment.
6% from $378.9 million
"We missed the mark
in the same period a year
last year on our promoago. Net sales, though, fell
tional spending, on soup
3% to $1,870 million from
and refrigerated dough,"
$1,923.8 million.
he said. "So in fiscal '18
During the call, Mr. Harour goal is to be in the
mening identified four
zone on pricing during
global priorities that Genthe key season. We're not
eral Mills considers critilooking to win on price,
cal to improving top-line
and we won't go back to
growth trends.
GENERAL MILLS
the levels of investment
First, the company plans
to grow its global cereal platform, said. The rigidity of the glass helps from two years ago, but we know
including Cereal Partners World- maintain the yogurt's integrity, we need to be more competitive this
wide, behind compelling product allowing it to stabilize without the year.
"In addition, we'll continue to
news, innovation and advertising use of added corn starch or gelatin.
"Oui by Yoplait will lead the de- invest in targeted consumer news
investment.
"In fiscal '18, we're going to le- velopment of an emerging yogurt where we see strong returns. This
verage our wellness advantage segment, which we call 'Simply Bet- fall, we are launching a line of orby investing behind the new cam- ter,'" Mr. Harmening said. "This is ganic soups under the Progresso
paign across the Big G franchise an important step in improving our brand, combining our organic excalled 'Good Starts with G,'" Mr. U.S. Yogurt performance, reshaping pertise with Progresso's top soup
Harmening said. "We're using TV our portfolio and helping the cat- flavors. And we're taking refrigerated dough out of the can with two
and digital media to highlight our egory return to growth."
Third, General Mills plans to invest new varieties of Pillsbury pizza
great taste from real ingredients,
our whole grain, our fiber content to drive differential growth across dough." MBN
GENERAL MILLS

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