General Mills Sets Sights on Consumer-Focused Growth: GLP-1 Strategy, Inventory Optimizations
General Mills is focusing on consumer-centric innovation and strategies to drive business growth, including through new products that respond to active trends such as GLP-1. It is also keeping up with the inventory shifts through digital optimizations.
Jeffrey Harmening, General Mills CEO, said during a recent earnings conversation that GLP-1, although seen as a long-term structural headwind for CPG companies due to reductions in calorie consumption, provides opportunities for meeting consumers where they are.
"As a result of consumers looking for [GLP-1], they want more protein," said Harmening, adding that people tend to lose muscle mass when they're reducing their calories and need more macronutrients and fiber. "There's a reason why Cheerios Protein is off to such a great start, or Progresso Pitmaster, which is high in protein, is off to a really good start."
The company also recently launched Nature Valley creamy protein and is seeing growth in its granola business as well.
According to Harmening, General Mills expects GLP-1 usage to continue to grow, although it has not yet had a significant impact on its categories just yet.
Keeping Up With Demand
General Mills has been able to quickly adapt to inventory shifts as a result of trends like GLP-1 or seasonal upticks like back-to-school shopping through ongoing business optimizations.
By investing in digital technology and a digitized supply chain, the company can more deeply understand the consumer because it can analyze shoppers from many different angles, said Harmening.
Also: How Asheesh Saksena is accelerating tech-enabled growth at General Mills
As an example, General Mills is using artificial intelligence and leveraging technology to enhance forecasting accuracy, freeing up supply chain workers so they don't have to spend time double-checking numbers. It's also allowing the marketing team to focus more on improved demand generation, and waste elimination has been improved.
