Market Overview

General Mills CEO: Everyone Is 'Doing The Job They Need To Do'

General Mills CEO: Everyone Is 'Doing The Job They Need To Do'

General Mills, Inc. (NYSE: GIS) is able to keep up with the demand for shelf-stable food because everyone at the organization with the help of outside forces like law enforcement is "doing the job they need to do," CEO Jeff Harmening said Thursday on CNBC's "Closing Bell."

What Happened

General Mills is altering its mission slightly from "making food the world loves" to "making food the world needs," the CEO said. The company is seeing a growing demand for "in-home" food categories, like soup, cereal, yogurt, baking mixes. As expected, the company is seeing less demand for "away-from-home."

China, for example, is showing a double-digit sales growth for "at-home" categories over the past few months, he said. Over the same time period, sales at Haagen-Dazs shops in China were down 90% as nine-out-ten stores were closed in the country.

Encouragingly, the vast majority of shops in China are now open, he said. Although foot traffic is still down 50% it is still a "good sign" consumers are coming back to stores. This should bode well for people in the U.S. and Europe.

Why It's Important

General Mills has been able to fulfill more than 90% of all orders at a time of heightened demand for food products, the CEO said. This wouldn't be possible without new benefits for employees, including sick leave or to take care of children.

Overall the food supply chain in the U.S. is "just remarkable" which gives General Mills the confidence it can continue supplying the U.S. and the world with food.

Related Links:

Mondelez CEO Talks Global Food Demand And More

Hershey Analyst Turns Bullish As Retail Sales Rise


Related Articles (GIS)

View Comments and Join the Discussion!

Posted-In: CNBC Coronavirus food Jeff HarmeningMedia