General Mills Maps Growth for 2018

MINNEAPOLIS -- General Mills is making yogurt innovation a priority after North American retail sales of its Yoplait products fell 22% in first-quarter fiscal 2018.

The food maker will also focus on growing cereal globally, investing in differential growth opportunities and managing foundation brands, it said in a statement about its first-quarter results.

Click through to see how Minneapolis-based General Mills performed in the following areas during the first quarter, and what it has planned for the rest of the year ...

As its Yoplait Greek and Light varieties floundered, new Oui by Yoplait, released in July, performed well, General Mills said. The creamy French-style yogurt comes in glass pots, and it is central to General Mills’ yogurt-innovation push.

“What we said this year for our yogurt business to get better is that we needed our innovation to work, and we're pleased by that both on Oui and our yogurt mix-ins,” Chief Financial Officer Don Mulligan said during an earnings call.
 

Cereal retail sales were down about 1% in Q1, an improvement from fiscal 2017.

“We continue to see the best results on brands to deliver on consumers' … desire for great taste,” CEO Jeff Harmening said in an earnings call, citing sales growth by Lucky Charms (15%), Reese’s Puffs (8%) and Cinnamon Toast Crunch (4.5%).

The company is introducing new Chocolate Peanut Butter Cheerios, which will hit U.S. shelves in October, as well as bringing back its Pumpkin Spice flavor and expanding its seasonal lineup with Banana Nut Cheerios, Harmening said.

As part of its goal of differential growth, the company highlighted Haagen-Dazs; Nature Valley, Larabar and Fiber One snack bars; the Old El Paso Mexican brand; and natural and organic products such as Annie’s as areas for investment. All saw U.S. retail sales growth in Q1. Larabar in particular posted a strong showing with 33% growth, bolstered by new Larabar Bites flavors and Larabar Nut & Seed bars. 

Organic brands Larabar and Annie's "are driving the majority of our natural and organic portfolios' growth, and we think there is room for more," Harmening said, revealing that the company will launch its first TV ad campaign for Annie's along with expanding the brand's lineup.  

General Mills identified its refrigerated dough, soup and baking mixes as priorities among its so-called foundation brands.

The company announced a new Pillsbury ad campaign and revealed it will add more icing to its Pillsbury Cinnamon Rolls.

And it recently launched a line of organic Progresso soups and premium versions of its cake and cookie mixes under the Betty Crocker Ultimate and Betty’s Original brands.