Prices, Packs and Portfolio Reshaping: Inside General Mills’ Next Big Shift

Price-pack architecture, AI technology and continuous portfolio renovation emerged as key themes during General Mills’ Investor Day Tuesday as it asserted its ability to meet changing consumer demands and continue to produce “industry leading levels of margin management cost savings” after reporting an expected $600 million in 2025 cost savings, said CEO Jeff Harmening, during prepared remarks.

The proclamation, which was followed by details on Accelerate Driving Remarkability strategy, comes at a time when many of the major food maker’s industry peers are falling behind – both on sales expectations and in their ability to keep up with consumers. General Mills emphasized that its plans are intended to return the company to consistent organic sales growth.

According to Harmening, General Mills has “high confidence” it can continue to deliver cost savings to fuel growth, even amid tariffs, changing food regulation and supply chain challenges. He also highlighted the company’s effectiveness in reshaping its portfolio through M&A and divestitures, which it will continue to do through its “always-on M&A capability.”

That will likely be a welcomed acknowledgement as M&A efforts this year have largely been a “reshuffling game,” as Peter McDonald, a former leader at General Mills and founding partner of consultancy firm McDonald Strategy Partners, told Nosh earlier this year. General Mills’ portfolio overhaul has impacted roughly 30% of the company’s net sales base, Harmening explained, while emphasizing its divestment of Yoplait earlier this year was executed as the company did not see a profitable pathway to growth.

“When the opportunities arise, with this strong foundation, we’re well equipped to keep adapting to market realities because we know that the landscape could use a shift,” Harmening said. “On one side, we’re managing uncertainty around tariffs, global conflicts, food regulations, and we continue to see consumers seeking value as they contend with a historic level of inflation. On the other hand, technology adoption from AI to new diet solutions like GLP-1s are rapidly reshaping consumer behaviors and expectations.”

In order to meet those shifts, General Mills said it will lean “boldly” into new product innovation via its “Remarkable Framework” in 2026, including renovations on both formulation and pack sizes, premium innovations and seasonal offerings. The framework assesses each brand on five metrics in comparison to their competition, in the process identifying key areas to restore it to growth.

General Mills expects a 5% contribution to the company’s total net sales from those innovations next year, compared to 3.5% lift tracked this year; looking within its North America Retail (NAR) segment, the company expects a 25% net sales contribution from new innovations. The company also expects to release 50% more seasonal offerings in the year ahead.

Those innovations are also being designed to help offset unexpected pressure faced this year due to economic challenges and consumer price sensitivity. The company has been taking a “surgical” approach to pricing this year after “it became clear that price sensitivity had become too much of a barrier in certain categories, keeping the rest of our investments from breaking through,” said NAR group president Dana McNabb.

“We can have the best product with the most compelling brand campaign, but if we’re priced too high, the consumer simply won’t put us in the consideration set,” she said. “With consumers under significant economic pressure, we’re investing to narrow price gaps on some of our biggest product launches or get under key price clips, with the goal of addressing price value for about two-thirds of our [North American Retail] portfolio.”

Recent investments, such as lowering the price of the Totinos pizza rolls large pack, resulted in 20% pound growth, McNabb said. The company has tracked “bifurcated growth” across its assortment with some consumers reaching for larger value sizes and others favoring smaller, more affordable formats while those in between fell flat.

NAR, which represents nearly $11 billion in net sales between snacks, meals, baking and cereal, has been the source of intense focus and reshaping for General Mills. On the new product front, the company is prioritizing bolder flavors, better-for-you benefits like protein and “familiar and fun experiences for stressed consumers.”

According to McNabb, 62% of consumers are more likely to buy a food if it is spicy, a key driver of its innovation approach with items like Progresso Pitmaster barbecue-inspired soups, new spicy varieties of Chex Mix and a new line of Totino’s ultimate pizza rolls.

As for messaging, General Mills is deploying “AI across the entire communications chain, from ideas to content creation to publication” which it believes will keep media investments and brand communication more nimble and adaptable with changing demands. But it’s not all about the robots either; General Mills is also executing a double-digit increase among its work with social media influencers in the year ahead.

Lastly, the company is working to drive increased ecommerce engagement by leaning in more and building “effective growth plans’ with some of its biggest omnichannel retail partners.

“Let me be clear, we have more work to do,” McNabb said. “We won’t get everything exactly right, but I am confident we’re onto the right things, we’re listening to our consumers, and we’re making the bold choices and necessary investments to fuel our growth by staying focused on the remarkability of our brands and leveraging the power of our remarkable NAR portfolio to consistent profitable growth.”