Dive Brief:
- General Mills plans to invest $54 million in an innovation plant near its Minnesota headquarters as the Cheerios maker aims to accelerate development of new products and boost sales.
- The company will add a new 35,000-square-foot wing to its James Ford Bell Technical Center, a key hub for General Mills' innovation, technology and quality capabilities. The addition will increase pilot plant space by more than 20% and provide state-of-the-art facilities for research and development teams.
- Food and beverage makers are investing more in innovation as consumers cut back on spending and demand more out of the products they purchase.
Dive Insight:
General Mills said the investment underscores its desire to develop products to consumer demand for everything from spicier flavors to high protein.
The expansion will provide flexible spaces to accelerate research and innovation across the company’s business units and offer greater flexibility to meet evolving demands. Even as consumers cut back on how much they spend, and as tariffs add another wildcard to the mix, companies have no choice but to innovate and develop new products that keep them competitive.
"This expansion is a critical step in ensuring General Mills remains at the forefront of innovation," Lanette Shaffer Werner, chief innovation, technology and quality officer at General Mills, said in a statement. "The new wing at our James Ford Bell Technical Center will add much needed flexibility in our pilot plant operations and empower our teams to collaborate more effectively to deliver the next generation of consumer-centric products."
In June, General Mills forecast organic net sales to be roughly flat for its fiscal year 2026. The food maker is committed to launching new products across its biggest product categories, many of which tap into current trends, such as protein in cereal, or bold and spicy flavors in snacks.
The addition to its innovation facility comes after General Mills announced earlier this year that it could cut jobs as part of a new global transformation initiative intended to increase productivity. The company also shuttered its in-house innovation unit and paused additional outside investments by its venture capital arm, saying it’s adjusting “how we pursue new growth initiatives.”
