General Mills, Inc. · NYSE:GIS
General Mills — Investor Day (July 2016)
26 slides from General Mills's investor day presentation, Jul 13, 2016
Slide 1: Jeff Harmening, President, Chief Operating Officer
Jeff Harmening President, Chief Operating Officer
Slide 2: U.S. Food and Beverage Categories Remain Stable
U.S. Food and Beverage Categories Remain Stable Food and Beverage Categories General Mills Categories Retail Sales Growth Retail Sales Growth 2.2% 1.6% 1.6% 1.0% 0.4% 0.1% F14 F15 F16 F14 F15 F16 Source: Nielsen XAOC 18
Slide 3: U.S. Retail Portfolio Segmentation
U.S. Retail Portfolio Segmentation F16 Net Sales = $10.0 Billion “Growth” “Foundation” Cereal Progresso Soup Snack Bars Pillsbury Ref. Dough Natural & Organic Betty Crocker Desserts Totino’s Old El Paso 64% 36% Others Yogurt 19
Slide 4: U.S. Retail 2017 Priorities
U.S. Retail 2017 Priorities • Accelerate Performance on Growth Businesses • Renovate and Innovate in Growing Yogurt Segments • Enhance Profitability of Foundation Businesses 20
Slide 5: U.S. Cereal Category Stabilizing
U.S. Cereal Category Stabilizing Retail Sales Growth -0.7% -1.4% -3.1% -4.3% F13 F14 F15 F16 Source: Nielsen XAOC 21
Slide 6: General Mills Cereal Performance
General Mills Cereal Performance Retail Sales Growth 2.8% -1.4% -2.3% -3.0% -3.0% F15 Q1 Q2 Q3 Q4 F16 Source: Nielsen XAOC 22
Slide 7: Gluten Free Cheerios Driving Growth
Gluten Free Cheerios Driving Growth Gluten Free Cheerios Varieties Gluten Free in August 2015 Retail Sales Growth 5% -1% Gluten Free in Summer 2016 -8% F15 1H 2H F16 Source: Nielsen XAOC 23
Slide 8: No Artificial Colors or Flavors News
No Artificial Colors or Flavors News 75% of Portfolio in December 2015 Retail Sales Growth (7 Featured Varieties) 8% >85% of Portfolio in August 2016 -6% -6% F15 1H 2H F16 Source: Nielsen XAOC 24
Slide 9: Continued Innovation on Nature Valley Cereals
Continued Innovation on Nature Valley Cereals Nature Valley Cereal Retail Sales ($ in Millions) +35% +44% New in 2017 F14 F15 F16 Source: Nielsen XAOC: Excludes Oatmeal 25
Slide 10: Innovating With New Cereal Brands
Innovating With New Cereal Brands Annie’s Cereals Tiny Toast • Organic • Made with Real Strawberries and Blueberries • Whole Grain Oats is the #1 Ingredient • No Artificial Colors, Flavors or Sweeteners 26
Slide 11: Strong Levels of Support
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Slide 12: Nature Valley Snack Bars
Nature Valley Snack Bars Continue Renovation Support New in 1H F17 28
Slide 13: Continue Driving Lärabar Growth
Continue Driving Lärabar Growth Lärabar Retail Sales ($ in Millions) CGR = +24% +19% F12 F16 New in 1H F17 Source: Nielsen XAOC 29
Slide 14: Continuing Growth on Old El Paso in 2017
Continuing Growth on Old El Paso in 2017 Innovation Renovation 30
Slide 15: Continuing Growth on Totino's
Continuing Growth on Totino’s Fiscal 2017 Innovation Targeting Millennial Consumers 31
Slide 16: Building Our Natural & Organic Portfolio
Building Our Natural & Organic Portfolio General Mills Natural & Organic Net Sales ($ in Millions) CGR = +18% $1 Billion $750 $50 F00 F16 F19 Pro forma Goal Note: F00 figure not restated for current classifications. F16 pro forma includes 12 months of EPIC Provisions. Includes net sales in U.S. Reta
Slide 17: Annie's Category Expansion in 2017
Annie’s Category Expansion in 2017 Cereal Soup Yogurt Refrigerated Baked Goods Granola Bars Relaunch 33
Slide 18: Distribution Opportunities for Natural & Organic Portfolio
Distribution Opportunities for Natural & Organic Portfolio General Mills Priority 100 N&O SKUs Current Average Average % ACV SKUs per Store per Item Annie’s 13 35 Cascadian Farm 9 33 Lärabar 5 32 Muir Glen 3 35 Food Should Taste Good 1 23 Liberté 1 21 Mountain High 1 15 Total 33 24 Source: As of Q4
Slide 19: Fix Our Yogurt Mix with Renovation and Innovation
Fix Our Yogurt Mix with Renovation and Innovation F16 Retail Sales by Yogurt Segment 48% Category 42% General Mills 21% 22% 20% 17% 11% 7% 7% 5% 6% Greek Regular Light Kid Digestive Beverage Organic % Sales Health Growth by Segment: +7% +1% -16% +3% -4% +17% +12% Source: Nielsen XAOC; Organic sales
Slide 20: Yogurt Renovation in 2017
Yogurt Renovation in 2017 First Half Second Half Renovating 60% of our Yogurt Portfolio in F17 36
Slide 21: Yogurt Innovation in 2017
Yogurt Innovation in 2017 First Half Second Half 37
Slide 22: More 2017 Yogurt Innovation: Organic
More 2017 Yogurt Innovation: Organic Annie’s Liberté Relaunching as Organic in July 38
Slide 23: Enhance Profitability on Foundation Businesses: Progresso Soup
Enhance Profitability on Foundation Businesses: Progresso Soup Targeted Consumer News • Lowering and Optimizing Commercial Spend • SKU Optimization 39
Slide 24: Enhance Profitability on Foundation Businesses: Baking Products
Enhance Profitability on Foundation Businesses: Baking Products Targeted Consumer News • Lowering and Optimizing Commercial Spend • SKU Optimization 40
Slide 25: Margin Expansion Across the Portfolio
Margin Expansion Across the Portfolio • Strong Levels of HMM Cost Savings • Increased Savings from Project Century • SKU Rationalization Reduces Complexity Rectangular Pizza = Significant HMM Cost Savings 41
Slide 26: U.S. Retail 2017 Priorities
U.S. Retail 2017 Priorities • Accelerate Performance on Growth Businesses • Renovate and Innovate in Growing Yogurt Segments • Enhance Profitability of Foundation Businesses • F17 Goals • Organic Net Sales: -LSD • Segment Operating Profit Margin: +200 bps vs. LY 42