General Mills’ First-Party Data to Fuel Digital Coupon Spend Surge
General Mills will increase coupon spend by around 20% as the company doubles down on both value and brand building to woo price-conscious consumers.
Thanks to its stores of first-party data, General Mills is bullish on its ability to improve promotion ROI by targeting consumers with digital coupons, expected by CEO Jeff Harmening to provide a competitive advantage in a tight market.
Net sales for the No. 32 publicly owned consumer goods company dipped 1% for the 2024 fiscal year and 6% for Q4. As a result, General Mills will lean not only into value messaging but also product innovation and brand marketing to improve volumes. It also expects to continue to reap benefits from a series of earlier supply chain technology investments.
Brand Building
Investments on tap for fiscal 2025 include new brand and product advertising, price pack architecture shifts with both variety and value packs, and partnerships with key sports and entertainment influencers.
They will continue pursuing the pet humanization trend through new products and increasing media investments by double digits for the Blue Buffalo brand, including through partnerships with select retailers. The company was among the first CPGs to sign on as an partner for Instacart’s smart cart advertising pilot at the beginning of this year.
General Mills will also introduce a renewed focus on the iconic Pillsbury Doughboy: “We’re bringing the Doughboy back after a few years. Private-label — they don't have a Doughboy, we do,” noted Harmening on an earnings call this week. “And not only is he coming back, he’s got all kinds of news to share about flakier crust and things like that.”
Supply Chain Investments
General Mills will expand use of artificial intelligence to reduce waste in its manufacturing and logistics networks. Harmening said they’ve reduced waste by 20% this fiscal year on some of its largest manufacturing sites thanks to new digital capabilities, which will roll out to more locations.
Like many consumer goods companies, General Mills has taken steps to simplify sourcing, including reducing the number of ingredients it relies upon. Digital capabilities in its logistics network, meanwhile, are expected to shave a million miles off the roads their trucks travel, said Harmening.
