Dive Brief:
- General Mills will restructure its business from four operating segments to three on Jan. 1, the same day the cereal and pet food maker welcomes a new CEO.
- The Cheerios manufacturer will be organized into three segments: cereal, snacks and international; meals and baking solutions; and pet. Previously, its four divisions were North America retail, North America pet, North America foodservice and international.
- General Mills also announced a slate of executive appointments alongside the new structure. Incoming CEO Dana McNabb said the new business model “better aligns our leadership and resources with our highest priorities” and will position the food giant to accelerate growth.
Dive Insight:
A little over a month after naming a new CEO, General Mills’ incoming leader is wasting little time making changes at the storied food company.
McNabb, who will take over from Jeff Harmening in January, said the new format will turn consumer insight “into action more quickly,” and that “winning consumer choice today means responding faster to changing needs.”
McNabb is no stranger to General Mills, having joined the firm in 1999. She has held various roles at the Minnesota-based company, including most recently as COO.
In addition to the restructuring, General Mills announced a series of executive appointments:
- Ricardo Fernandez will take on an expanded role as president of cereal, snacks and international. He is currently president of General Mills’ international business.
- Brett White will be promoted to president of meals and baking solutions. He currently serves as president of U.S. meals and baking solutions.
- Liz Mascolo will continue to lead the company’s pet business as president.
- Josh Yates will be promoted to chief commercial officer, leading U.S. retail sales and enterprise commercial capabilities. He is currently the company’s chief customer officer.
The changes come as General Mills and other food makers grapple with slowing sales from a pullback in consumer spending and a shift by shoppers toward healthier, less processed products. In a similar move last week, energy drink maker Celsius Holdings announced it will form dedicated divisions for its three brands to improve its growth outlook.
During its most recent quarter, General Mills said sales for the period ended Aug. 30 fell 3% to $4.4 billion, as the recent yogurt divestiture impacted the business. Overall, the company said organic net sales were roughly flat from last year.
