General Mills is speeding up product development after slashing costs on a large portion of its goods, according to Dana McNabb, the firm’s chief operating officer. The Minnesota-based company is focusing on consumer desires like protein, fiber, clean labels, bold flavors, and fun and indulgence.
The firm has boosted new product releases over the past two years by 50%. These innovations now account for 5% of General Mills’ net sales. McNabb observed that retail sales in North America climbed roughly 2 points in the first quarter compared to fiscal 2026.
Market share rose in most of the company’s key segments. However, cereal market share dropped 0.1 in the first quarter following a 0.9 decline in the same timeframe the prior year. For soup, the Progresso owner stated its share slipped 0.1 after a previous 0.4 drop.
General Mills also saw progress with its struggling Totino’s brand, halving recent declines. McNabb later told analysts, “We’re not all the way to growth yet,” and added, “We still have work to do.”
In late 2025, the company lowered prices on about two-thirds of its grocery items in North America, which led to higher sales volume. Other companies, such as PepsiCo, have also enacted their own rounds of price reductions. General Mills indicated it will take a more targeted approach to raising prices in the future.
McNabb stated, “We operate in 25 categories, and each one requires a specific set of actions. We’ll assess the price value relative to the competition, and we’ll continue to adapt as the environment adapts.” The company intends to cut $3 billion in costs during the next four years, with two-thirds of that total aimed at a more precise focus on products and trends that most resonate with consumers.
These savings will enable General Mills to fund investments in its brands, offset inflation, and accelerate its earnings and cash flow growth in fiscal ’28 and beyond. During its latest quarter, the company reported that sales for the period ended Aug. 30 fell 3% to $4.4 billion, largely due to the impact of the recent yogurt divestiture.