US packaged food giant General Mills is getting ready to launch 80 new products in grocery stores by December this year.
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The company has seen its share price struggle in recent months while rivals Kellogg and Kraft have seen their shares rise by healthy margins. Since General Mills acquired Pillsbury from UK drinks conglomerate Diageo last year, shares have fallen by some 17% from the yearlong high of US$52.86 last December.
A report in the Aberdeen American News suggests that this may be down to the company’s failure to concentrate resources on new product development. With increasing pressure from supermarkets to keep prices low, introducing new products can be the best way to increase revenue.
Chairman and CEO Steve Sanger said that the 80 new products are in addition to a range of improvements to existing products. General Mills has also added a new retail sales organization of 450 people who are visiting stores throughout the country.
Those employees will increase visibility within stores by creating more special merchandise displays, making sure stores do not run out of products and getting new items on the shelves faster, said Jim Lawrence, chief financial officer.
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By GlobalDataThe company hopes to see unit volume sales rise by 4% over the next year as a result of the changes it is making.
