General Mills is leaning heavily into artificial intelligence and product innovations as the Cheerios and Pillsbury owner looks to reignite consumer growth.
The CPG giant is using AI to build digital personas with which to understand consumers and their problems, and the company will create solutions from their feedback, said CEO Jeffrey Harmening during CAGNY on Tuesday. It’s also using AI within its marketing efforts to better target consumers based on a brand’s messaging.
General Mills is “innovating how we innovate,” Harmening said, “by investing in our capabilities to deliver bigger, more impactful ideas that resonate with consumers.”
The focus on using AI to reach new consumers comes as more shoppers use the technology to discover new brands or build their grocery lists. General Mills said it tripled growth in e-commerce across its top five delivery retail partners in recent months.
In addition to technology, the CPG giant is focused on developing new products that tap into consumer trends such as a desire for more protein or fiber. Dana McNabb, group president of North America Retail, said in the second half of the year the company is planning new launches that are “GLP-1-friendly,” such as Honey Nut Cheerios Protein and Ghost Performance nutrition bars.
General Mills wants net sales from new products to grow about 25%, with contributions from each of its eight billion-dollar brands.
To accomplish that, the Cheerios owner is focusing innovation to improve the “taste, nutrition, ingredients and packaging” in brands across its portfolio. The company is planning a cheesier Annie’s Mac & Cheese and a Pillsbury refrigerated dough that bakes up bigger.
General Mills also noted it will invest in packaging changes, noting that updates to brands such as Chex Mix and Gushers have driven higher sales.
The strategic focus on innovation and AI comes as the CPG giant lowers its fiscal 2026 outlook, expecting organic sales to fall by as much as 2%. In General Mills’ most recent earnings report, the company logged $4.9 billion in net sales, a 7% year-over-year decrease, with executives noting consumer sentiment still has not recovered as expected.
“We are not making small incremental moves on product this year,” McNabb said. “We are making big bets in areas that matter most to our consumers.”
