General Mills Accelerates Organic Sales Growth with Strategic Investments
General Mills, a leading food company, has reported a strong second quarter fiscal 2025 performance, driven by strategic investments to improve market share and accelerate organic sales growth. According to Jeff Harmening, Chairman and CEO, the company's top priority for this year is to leverage its experience framework to drive volume growth and increase market share.
During the earnings conference call on December 18th, Harmening highlighted that despite facing a more prolonged value-seeking behavior from consumers than initially anticipated, General Mills has made significant progress in improving its volume and share trends. The company has stepped up investments across all aspects of its product offering, including increased product renovation news, brand building, and promotional support.
"We're bringing more value to consumers across all aspects of our total product offering," Harmening stated. "Leaning into our greening and superior messaging on Blue Buffalo Pet Food business has led us back to growth." He also mentioned that strong brand campaigns and innovation have helped return the U.S. cereal business to share growth.
General Mills has seen broad-based improvements in volume and share trends across various categories, including food snacks, Mexican foods, soups, snack bars, food service channels, and international markets. However, the company is adjusting its plans for the refrigerated dough segment to ensure that Pillsbury brings more value to consumers across a broader portion of the portfolio.
Regarding the incremental spend planned for the back half of the year, Harmening emphasized that while it may impact profit outlook, it's the right choice to position General Mills for stronger growth in fiscal '26 and beyond. "We're confident in our strategy and the investments we're making," he stated. "It's about driving volume growth and increasing market share."
Analysts have praised General Mills' strategic approach to improving its competitiveness across the portfolio. Andrew Lazar from Barclays asked for clarification on the learnings taken away from initial efforts, particularly in light of planned incremental spend. Harmening replied that the company has learned that consumers are engaging more with their products and adjusting reference price points, justifying the need for increased investment.
