Background and challenges:
Unfavourable financials and layoffs with declining revenues with an unchanging brand portfolio
The industry is highly concentrated and very competitive. Millenials have a different taste preference and are demanding health more than anything else. Smaller brands are on the rise.
What is General Mills doing?
Their main scope issue is how they need to reshape their portfolio. They can look at their supply chain. They are looking into their sourcing and sustainability of their source farms.
General Mills innovates across brands. How do they add value? Individual brands are might small but GM can innovate across and help individual brands which makes sense in the whole portfolio.
What should General Mills do next?
Progresso as a brand from a size and value added perspective should be divested. The category is declining and take the innovation from this brand into it’s other brands. There aren’t any innovations in the this particular category that are driving increase in the category. General mills is already taking away resources from Progresso. Progresso hasn’t been prioritized for any advertising or promotions.