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General Mills CEO Talks Food Trends And Demand

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General Mills CEO Talks Food Trends And Demand

General Mills, Inc. (NYSE: GIS) remains well positioned to address a potential surge in food demand amid rising COVID-19 cases worldwide, CEO Jefff Harmening said on CNBC's "Closing Bell."

Fully Operational: General Mills managed to keep its supply chain "strong" since the early days of the pandemic and it remains fully operational today worldwide, Harmening said. All of its plants are "up and running" across the globe while adding capacity in key products like cereal and soup.

Most grocery stores are sitting on more inventory today than they were a few months ago ahead of a potential surge in demand.

"We are ready and running very well right now," said Harmening.

See Also: Credit Suisse Upgrades General Mills, Says Stock Trades At Too Big A Valuation Gap

Elevated Demand: Throughout the next few quarters, demand for food at home will remain elevated as restaurants are closed or restricted, people aren't returning to their offices, and many students are learning from home.

Investors may be underestimating the near-term outlook and also overlooking potentially long-lasting trends, he said. For example, household penetration is up in nine of the company's top-10 categories, repeat purchase rates are up, and new customers are "very satisfied."

However, Harmening said it's inevitable that at some point consumers will return to restaurants at higher rates but at the same time many new consumers "rediscovered that the kitchen is the heart of the home."

 

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