For most kids, cereal was a breakfast staple in their childhood, especially for those who grew up with busy parents or parents who lacked culinary abilities.
From the colorful packaging to the fun flavors, it seemed as if cereal was made specifically for kids, and choosing one kind to purchase was very difficult with all the available options in the grocery store aisle.
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However, some may not know that most of their favorite childhood cereals were made by a single company. Thanks to its delicious creations, which won the hearts of millions of families worldwide, this company grew to become the most lucrative and best at its craft.
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General Mills is an American food company that manufactures and sells processed foods worldwide. It owns over 100 well-known brands, including Cheerios, Lucky Charms, Cinnamon Toast Crunch, and more.
Cereal boxes in a grocery store.
General Mills struggles to deliver consistent growth
Although General Mills (GIS)  is still a very profitable company, its business is not growing as fast as it has in the past, a concern many food companies have faced over the last few years.
The uncertain economy, ever-evolving consumer market, and even political conflicts have driven higher production costs, supply chain disruptions, and an overall scaleback in consumer spending.
For the full year of 2024, General Mills’ total net sales declined by 1% compared to last year, its North American retail sales were down by 1%, and its overall operational profit decreased by 2%.
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To survive these tumultuous times and accelerate sales growth, General Mills increased investments in product renovation, brand building, promotional support, and value-saving tactics.
“Stepping up our investment is impacting our profit outlook for the back half of the year, I am very confident that it’s the right choice to position us for stronger growth in fiscal ’26 and beyond,” said General Mills CEO Jeffrey L. Harmening.
However, the company explained that its investments were not the same across all categories and parts of its business. Instead, they were targeted and chosen based on areas that its analytics show would provide the best return.
These results led the company to make some harsh decisions for the sake of its business’ future.Â
General Mills announces multiple shutdowns and layoffs
General Mills announced it is closing G-Works, the company’s innovation unit, and halting all new investments by 301 Inc., its venture capital arm, to pursue new growth initiatives.
In addition to pursuing alternative ways to grow, the hardships faced by the food industry over the last few years due to inflation and the unpredictable state of the economy were also factors in the closure of G-Works.Â
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As a result of these shutdowns, the company revealed it would lay off around 40 employees to reduce costs.Â
G-works and 301 Inc. work hand-in-hand to invest in emerging brands that promote innovation in the food industry, which is an expense General Mills can no longer afford, as it has struggled to deliver consistent growth over the last few quarters.
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