General Mills is accelerating its pace of product innovation following recent “decisive actions” by the Cheerios maker to cut prices across much of its portfolio, a top executive said Wednesday.
The Minnesota-based company is prioritizing trends that are in demand with today’s consumers, including protein, fiber, clean labels, bold flavors and “fun and indulgence,” Dana McNabb, General Mills’ chief operating officer, said in prepared remarks tied to the food giant’s first-quarter 2027 fiscal earnings report.
The company has increased its new product launches during the last two years by 50%. New products now make up 5% of net sales at General Mills.
“We understand what the consumer values, and we are bringing them appropriately to the categories that we play in,” McNabb said, noting retail sales in North America rose about 2 points in the first quarter compared to fiscal 2026. “We'll continue to see improved momentum going forward.”
The executive noted the food maker posted improved market share in the majority of its priority categories.
Cereal market share fell 0.1 during the first quarter after falling 0.9 in the same period a year ago. In soup, the Progresso owner said its share was down 0.1 after slipping 0.4. General Mills also has seen improvements in its struggling Totino’s brand, cutting recent declines in half.
“We're not all the way to growth yet,” McNabb later told analysts. “We still have work to do.”
The Chex Mix and Nature Valley bar maker cut prices on nearly two-thirds of its grocery products in North America in late 2025, resulting in an uptick in product volume. Other companies, including PepsiCo, have also followed with their own round of price cuts.
“We really focused on improving our base prices last year to bring more value to consumers, and we saw it worked," McNabb said.
During its most recent quarter, General Mills said sales for the period ended Aug. 30 fell 3% to $4.4 billion, as the recent yogurt divestiture impacted the business. Overall, the company said organic net sales essentially matched year-ago levels.
As other companies prepare to raise prices in the coming months as the Iran war and other inflationary pressures accelerate headwinds, General Mills said it will take a more selective approach to raising consumer costs in the future.
“We operate in 25 categories, and each one requires a specific set of actions,” McNabb said. We'll assess the price value relative to the competition, and we'll continue to adapt as the environment adapts.”
In July, General Mills said it planned to cut $3 billion in costs during the next four years, with two-thirds of the total geared toward a more targeted focus on products and trends that most resonate with consumers.
“These savings will help us fund investments in our brands, offset inflation, and accelerate our earnings and cash flow growth in fiscal ’28 and beyond,” McNabb said.
