General Mills, Inc. GIS is hoping to target health-conscious consumers as part of a new lineup of cereal breakfasts, including a $13 box of Morning Summit.
What Happened
General Mills CEO Jeff Harmening was speaking at the annual Consumer Analyst Group of New York (CAGNY) investor conference on Tuesday and explained how the company can rejuvenate breakfast cereal sales. Consumers want a combination of innovation, taste, convenience, and health benefits.
Aside from the Morning Summit cereal whose first ingredient is almonds, the company recently launched Blueberry Cheerios and GoodBelly probiotic cereal, according to CNBC.
Why It's Important
General Mills is more than halfway into its fiscal year 2020, and U.S. cereal retail sales are up 2%. The $8 billion a year U.S. cereal market finally showed signs of stabilization in 2019 with flat growth after a few years of poor performance.
"We believe this category improvement has been driven by a combination of our stronger performance and some improving macro and demographic trends, including a stabilization in the balance of breakfast at home versus away from home, as well as a return to growth and the number of households of kids in the U.S.," the CEO said at the conference.
General Mills executives believe the company remains on track to hit its fiscal 2020 targets, most notably an organic net sales growth of 1% to 2%, according to CNBC.
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