Latest news with #JeffHarmening
Yahoo
6 days ago
- Business
- Yahoo
General Mills initiates 'transformation' programme with embedded costs
General Mills has revealed a 'global transformation' programme that will incur costs of around $130m as the US food major seeks to boost productivity. In a filing with the US Securities and Exchange Commission yesterday (27 May), the Blue Buffalo pet food and Cheerios cereals brand owner said the 'multi-year' plan was approved by management on 20 May. It is 'intended to drive increased productivity by enhancing end-to-end business processes, enabled by targeted organisational actions'. Although light on detail, the initiative comes on the back of a poor set of results reported in March for the third quarter of General Mills' current 2025 fiscal year. And the company suggested yesterday the transformation programme will be accompanied by job cuts. Sales for the period dropped 5% in organic terms, a performance the company admitted fell short of 'expectations', with volumes down four percentage points. At the same time, General Mills downgraded its full-year guidance for a flat-to-higher print confirmed at the second-quarter stage in December. The Pillsbury cookies maker now expects organic sales to be down 1.5% to 2%. General Mills said yesterday that of the expected $130m in total charges, about $70m will be booked in the fourth quarter of 2025, 'primarily reflecting severance expenses'. The Old El Paso Mexican brand owner explained in the filing: 'The company anticipates that the series of actions related to the transformation initiative will be substantially completed by the end of fiscal 2028 and will result in total charges of approximately $130 million, of which approximately $120 million will be cash.' General Mills did not reveal any further details but implied in yesterday's filings that the initiative could have more in-depth implications. 'The estimate of costs that the company expects to record, and the timing thereof, are subject to a number of assumptions and actual results may differ from current expectations,' the publicly listed business added. 'The company may also record other charges or cash expenditures not currently contemplated due to events that may occur as a result of, or associated with, the transformation initiative.' Discussing the third-quarter results in March, chairman and CEO Jeff Harmening made a pledge to reinvest $100m from targeted savings in the 2026 financial year. 'We're reviewing new cost-efficiency initiatives that are anticipated to generate at least $100 million in additional savings in fiscal '26, with further savings expected in fiscal '27 and beyond,' Harmening explained. 'Our number one priority is to accelerate our organic sales growth by delivering remarkable consumer experiences across our leading food brands, resulting in stronger volume and improved market share performance.' General Mills is on target to generate 5% in cost-of-goods sold savings in the current year through the company's Holistic Margin Management (HMM) programme and expects to repeat that in fiscal 2026, equating to more than $600m in 'gross productivity savings', Harmening said in March. "General Mills initiates 'transformation' programme with embedded costs" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
21-05-2025
- Business
- Yahoo
General Mills to Webcast Remarks at dbAccess Global Consumer Conference on June 5, 2025
MINNEAPOLIS, May 21, 2025--(BUSINESS WIRE)--General Mills, Inc. (NYSE: GIS) announced that Chairman and Chief Executive Officer Jeff Harmening will be a featured speaker at the dbAccess Global Consumer Conference 2025 on June 5, 2025. A webcast of the live fireside chat is scheduled to begin at 3 a.m. CT, and a replay of the event will be available at # # # About General Mills General Mills makes food the world loves. The company is guided by its Accelerate strategy to boldly build its brands, relentlessly innovate, unleash its scale and stand for good. Its portfolio of beloved brands includes household names like Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Totino's, Annie's, Wanchai Ferry, Yoki and more. General Mills generated fiscal 2024 net sales of U.S. $20 billion. In addition, the company's share of non-consolidated joint venture net sales totaled U.S. $1 billion. For more information, visit View source version on Contacts (Investors) Jeff Siemon: +1-763-764-2301(Media) Chelcy Walker: +1-763-764-6364 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Breakfast cereal is in dire need of a makeover
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. After years of shrinking sales, cereal is no longer the star of breakfast. Now, food giants like General Mills and WK Kellogg are plotting how to get the former staple back on the table. Shifts in morning routines, rising costs and cereal's sugar-laden image have dragged down the category for years. But as consumers become even more concerned with inflation, those declines have recently accelerated, and companies are making it more of a priority to turn around the cereal category. At Froot Loops maker WK Kellogg, first-quarter sales declined 6.2% compared to last year. A similar story is playing out at its competitors. General Mills CEO Jeff Harmening told investors in March that cereal's performance "wasn't great," while Post Holdings, which owns brands like Fruity Pebbles, recently closed two cereal plants amid headwinds in the category. Many cereal giants are beginning to lean into consumer demand for healthier foods, noting that shoppers are willing to pay more for offerings they perceive to have more nutritional value. Upstarts like Magic Spoon, which offers a high-protein and no-sugar cereal, have taken away market share from traditional stalwarts. PepsiCo's Life brand debuted a multigrain cereal, Mighty Life, this year aimed at boosting immunity. 'It's a real dichotomy. You see some of the more premium organic natural [cereal] marketed as healthier for you …. doing well in the category while the overall category is not performing well,' Jeff Zadoks, chief operating officer of Post Holdings, told investors this month. 'There's a pocket of consumers that are spending for what they perceive as better for them, and are willing to pay essentially whatever necessary to get that type of product.' To reach that pocket of consumers, big companies are moving to relaunch big-name brands with added protein options or lower sugar. Kellogg debuted Special K Protein, while General Mills introduced Cheerios Protein. 'As we're seeing a shift in the category, we need to shift with it,' Kellogg CEO Gary Pilnick said on an earnings call in early May. Companies are also pouring more into marketing or redesigns to remake cereal's image as sugary or unhealthy. WK Kellogg faced protests to remove artificial dyes from its cereals, and manufacturers now face pressure from Health and Human Services Secretary Robert F. Kennedy Jr. to phase out synthetic colors as part of his 'Make America Healthy Again' initiative. 'We do believe the entire cereal category should be perceived better from a health perspective,' Pilnick said. WK Kellogg intends to focus more on health and wellness brands, including Special K and Kashi, which is being relaunched. Pilnick said consumer interest in health and nutrition is 'more than a fad,' and the company is accelerating plans to lean into those better-for-you attributes. 'While there are smaller brands in the market that are winning, we could do that, too,' Pilnick told investors. Recommended Reading Post Holdings sees cereal demand dip as Gen Z seeks healthier breakfasts
Yahoo
29-04-2025
- Business
- Yahoo
From Cheetos to Oreos, consumers are balking at rampant snack-flation
Long before President Trump's on-again off-again tariff policies caused a decline in the stock market and sparked fears of a global recession, a domestic economic pullback in a specific grocery category — snack foods — has been developing momentum. Industry insiders believe that the rising costs of all snack foods — both salty and sweet — have led consumers to cut back on purchasing these 'non-essential' items. In a February earnings call, PepsiCo — which owns such snack food brands as Cheetos, Lay's, Doritos, Fritos, Ruffles and Rold Gold, among others — reported below-expected quarterly results as demand for its snacks and drinks fell in North America for the fifth straight quarter. Last month, NBC's Today show noted that the average cost of a bag of chips is now $6.46 — a 31% increase compared to prices from 2021. And the Bureau of Labor Statistics says that snack food prices have increased more rapidly than any other grocery store category (save for the recent egg shortage, of course). That federal government agency reported that while grocery prices have increased 23% since February 2021, prices for chips and similar snack foods have increased 29%. The Today show segment underscored how consumers are bypassing impulse purchases of snack foods and candy bars at the checkout line by featuring a TikTok video of a young woman holding a bag of Funyons (another PepsiCo product) and wondering in disbelief "when did this go from costing 99 cents to $2.69?' The young woman put the bag of Funyons back on the rack. General Mills, which makes an array of popular cereals (including Cheerios, Cinnamon Toast Crunch and Cocoa Puffs) as well as Nature Valley granola bars and Fruit Roll-Ups, reported that it had seen a 'slowdown' in all of its snacking categories. During an earnings call, General Mills CEO Jeff Harmening was asked if he thought that more people being on GLP-1 weight-loss medications such as Wegovy and Zepbound could be contributing to the decrease in snack food purchases, but he dismissed that as a major factor. "Our belief is that consumers have become much more value conscious," he said while also mentioning that many consumers were cutting back on dining out and purchasing other non-essential grocery items. Last month Money magazine reported that 'J.M. Smucker recently said its Hostess brand was seeing decreased sales, with the company's executive citing general inflation in the economy that is weighing on consumer spending. Campbell's, which owns Goldfish and Kettle Brand chips, reported a 2% drop in organic sales, also blaming [decreased] snack food demand. Oreos maker Mondelez International recently said it expected a drop in profit due to rising cocoa prices, which have prompted price increases.' And it's not just snack-food manufacturers who are feeling the effect of this consumer behavior. Retailers ranging from gas station convenience stores to behemoths like Walmart and Dollar General have reported that their snack food sales are down. Some experts note that sector-wide 'shrinkflation' — which is when companies reduce the size of a product but charge the same amount as for the prior larger portion — has further discouraged consumers from making these kinds of purchases. Industry watchdog The Future of Commerce noted that 'faced with high prices and economic uncertainty, consumers are foregoing their favorite snack foods' — with 42% of them telling surveyors from the market research firm NIQ that high prices were why they were cutting back or, when possible, switching to cheaper generic store-label brands. Just as the fast-food industry has found in recent years, the consumer-packaged goods (CPG) industry is now realizing that when consumers with finite resources must make choices based on affordability, their products will be among the first on the chopping block. And just like fast-food giants like McDonald's and Wendy's have tried to regain customers' loyalty by offering more value-based options, executives at snack food manufacturers plan to do the same thing. General Mills' Harmening said that 'we're focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers.' Among the ways that they — and their competitors — are expected to do this, said The Future of Commerce, include 'releasing new versions of their products as well as brand-new items to appeal to health-minded consumers, including snacks packed with protein and mini sizes.' Whether the major snack food brands are able to win back customers with new products and repackaging of existing ones, only time will tell. But if consumers remain steadfast in rejecting ultra-processed overpriced snack food, they'll improve both their health and bottom line. This article originally appeared on Palm Beach Post: Experts: Cost conscious consumers choosing to cut back on snack foods
Yahoo
21-03-2025
- Business
- Yahoo
American Consumers Are 'Under Pressure.' That's Hitting Companies' Sales Forecasts
Consumers' anxiety about the economy prompted General Mills and J. Jill to issue downbeat forecasts, the latest cautious outlooks to arrive. Companies have shared downbeat projections days after U.S. retail sales ticked up less than expected in February. Economic unease may bode well for Ollie's Bargain Outlet, CEO Eric van der Valk economic unease that's marked the past year hasn't faded, executives say. Americans are worried about the economy, and that anxiety is leading to scaled-back outlooks at a range of companies. Women's retailer J. Jill (JILL) sees increased concern about the market and geopolitical conditions, executives said, and now expects same-store sales to fall as much as 5% year-over-year in the current quarter. General Mills (GIS) lowered its outlook for the coming fiscal year after reporting a 7% year-over-year decline in North American retail sales in its latest quarter. "We thought the consumer environment would improve," General Mills CEO Jeff Harmening said on a third-quarter earnings call on Wednesday. 'That hasn't really been the case. And consumers are still seeking value as much or more than they had [been] when our fiscal year began.' Companies have shared downbeat projections days after U.S. retail sales ticked up less than expected in February. Americans may be cutting back on expenses in part because they expect to pay more for groceries and household goods in the coming months, according to Bank of America research released Tuesday. The University of Michigan's Consumer Sentiment last month touched levels not commonly seen—outside the pandemic—since the 2008-09 recession. Shoppers are under pressure, and consequently, seeking out markdowns, particularly while shopping online, J. Jill CEO Claire Spofford said on an earnings conference call Wednesday. 'As we have heard from others across the industry, fiscal 2025 has started off more slowly than expected," Spofford said, according to a transcript from AlphaSense. "Our surveys echo the uncertainty." Customers are already dining out less frequently, according to General Mills' Harmening, and are now looking to save further on groceries. "Our belief is that consumers have become much more value conscious," he said. At Williams-Sonoma (WSM), executives on Wednesday cited an "unpredictable" economic backdrop while suggesting that sales could fall in 2025. Dollar General (DG) recently said that while it has seen some customers trading down to its offerings, its core consumer is feeling stressed. The uncertainty isn't a headwind for all companies. Ollie's Bargain Outlet (OLLI), a discount retail chain, said it's retaining high-income consumers, and may have the ability to acquire merchandise, real estate and talent as other retailers close or file for bankruptcy, CEO Eric van der Valk said on an earnings call Wednesday. 'Consumers remain under pressure,' van der Valk said, according to a transcript from AlphaSense. 'Many retailers are closing stores or shutting down entirely. Tariffs are creating uncertainty across the retail landscape. This all bodes well for Ollie's.' Read the original article on Investopedia Sign in to access your portfolio
