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August 5, 2020

General Mills invests in frozen-food plant

General Mills, the US food giant, is investing in a frozen-food facility manufacturing products for a brand that has seen rising demand in recent months.

By Dean Best

General Mills, the US food giant, is investing in a frozen-food facility manufacturing products for Totino’s, a brand that has seen rising demand in recent months.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The company said the plant in Wellston in Ohio specialises in making pizza snacks for its Totino’s brand.

Without specifying the amount to be invested, General Mills said it would spend “millions” to improve operations at the site for the facility “to be more productive and efficient, increasing overall capacity”.

The investment will add 12 jobs at the factory, the company confirmed to just-food, with the site set to employ almost 900 staff.

When General Mills announced its annual and fourth-quarter financial results in July, the company listed Totino’s Hot Snacks among the brands that had seen “strong results” and had contributed to a 68% jump in retail sales for its US Meals and Baking business in the final three months of the fiscal year.

Last week, General Mills said it plans to increase the use of co-manufacturers to keep up with the elevated demand amid the Covid-19 pandemic.

In the quarter to 31 May, General Mills reported a 21% rise in group net sales to US$5bn, with sales up 16% on an organic basis.

The company’s North America Retail division saw its net sales increase 36% in the quarter to $3.2bn amid higher demand among consumers for food to eat at home in response to the emergence of Covid-19 in the region.

For the full year, General Mills’ North America Retail business saw its net sales increase 8% to $10.75bn, driven by that demand dynamic and two percentage points of growth from a 53rd week in the fiscal period. On an organic basis, net sales increased 6%.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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