In the company’s first quarter of 2023 ending Aug. 28, the CPG saw organic net sales climb 10% to $4.7b and adjusted operating profit increase 8% as it pushed forward with its three-prong Accelerate strategy, which includes continuing to compete effectively, investing for the future and reshape its portfolio.
Under the first prong, General Mills was able to hold share in 56% of its priority business, which includes iconic brands such as Cheerios, Pillsbury, and Totinos as well as ‘local gems,’ like Kitano seasonings and Wanchai frozen dumplings.
“A key enabler for these results as has been our continued peer-leading performance in customer service,” which allowed the business to out-perform its competition in on-shelf availability in Q1 in its top 10 US categories, CEO Jeff Harmening told investment analysts Wednesday.
This included a 1.5% improvement in on-shelf availability of hot snacks, followed by 1.1% improvement in fruit snacks, a 0.9% increase in salty snacks, a 0.7% increase in refrigerated baked goods, 0.6% increase in soup, 0.5% in desserts and 0.4% in the highly competitive cereal segment.
The company is also engaging with consumers in new ways, including digitally through the July launch of its Good Rewards portfolio-wide loyalty program in the US.
Working with Fetch Rewards, the first of its kind program for General Mills was designed to “showcase our brands, drive engagement and loyalty with consumers and help families stretch their dollar to make meals more accessible,” Harmening said.