Milling & Baking News Corporate Profiles - November 2013 - (Page 96)

Company Overview General Mills, Inc. New products, acquisitions set stage for growth in '14 H eading into fiscal 2013 General Mills, Inc. set the stage for what promised to be a robust year of innovation. To that end, the Minneapolis-based company did not disappoint. New items such as Honey Nut Cheerios Medley Crunch cereal, Yoplait Greek 100-calorie yogurt and Nature Valley Protein Bars helped key strong gains in the company's U.S. Retail segment during fiscal 2013. Operating profit in the division rose 4% in fiscal 2013 to $2,392.9 million on a 1% gain in sales to $10,614.9 million. A similar strategy was put in play heading into fiscal 2014. The focus: High-protein snacks, bold flavors, gluten-free and on-the-go eating. "Our global categories of ready-toeat cereal, super premium ice cream, convenient meals, wholesome snack bars and yogurt are projected to grow at attractive rates in the years ahead," said Kendall Powell, chairman and chief executive officer, in a mid-June conference call with analysts. "Innovation will be the key driver of this growth, and we've got strong plans to do our part in fueling that category growth in 2014." One product with particular intrigue is BFast breakfast shakes. Available in vanilla, chocolate and berry flavors, the shakes boast the nutrition of a bowl of cereal and milk. Mr. Powell said the product is another way in which General Mills is attempting to capitalize on the massive breakfast daypart. "It is too soon to say how big it is, but clearly we think it is interesting," he said. Just as vital to the success of General Mills in the coming year will be the integration of recently acquired businesses Yoki Alimentos in Brazil, Yoplait Canada and Parampara Foods in India. Company executives throughout 2013 talked of the steps taken in recent years to create a stronger and broader base of growth outside the United States. And with the aforementioned companies now in tow, General Mills has sailed by its 2015 goal of reaching $3.7 billion in international sales. The industry also will be keeping an eye on General Mills' sustainability mission. In late September, the company committed to sustainably source 100% of its 10 priority ingredients by 2020. The ingredients - oats, wheat, corn, dairy, cocoa, vanilla, palm oil, sugar cane, sugar beets and fiber packaging - represent 50% of General Mills' total raw material purchases. "General Mills is committed to creating long-term value for our business, and our society," Mr. Powell said. "Producing enough food to feed an increasingly hungry world will require not only innovation and dedication, but also careful attention to the impact of agriculture on our environment." General Mills was furthest along in its work in palm oil and wheat. For the year ended May 26, the company had earnings of $1,855.2 million, equal to $2.86 per share on the common stock, which compared with $1,567.3 million, or $2.42 per share, during fiscal 2012. Sales for the year were $17,774.1 million, up 7% from $16,657.9 million. The company expects fiscal 2014 e.p.s. in the range of $2.87 to $2.90 per share. CP Chief executive officer - Top brands - Kendall Powell Cheerios Betty Crocker Progresso Green Giant Fiber One Hamburger Helper Yoplait Fiscal year 2013 global sales - 96 \ November 2013 $17.8 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013