In an interview on CNBC, Ken Powell, the CEO and Chairman of General Mills Inc. (NYSE:GIS), discussed the growth prospects for the company as well as the launch of some new variety of cereals by General Mills.
Powell said that the cereal is still the mostly consumed breakfast in America and General Mills Inc. (NYSE:GIS) has a strong share in that area.
“We are seeing some changes in the kinds of cereals that consumers want to eat. So there is more interest in proteins, so we have just launched cheerios protein cereal. There is certain things that some consumers want to avoid, so gluten-free products, Chex gluten-free cereal is very very popular.”
On declining consumption of cereals, Powell said that consumers are eating more protein rich breakfast nowadays as yogurt, eggs, etc. Therefore, there is a growing trend in the direction of protein, and, as a result, General Mills Inc. (NYSE:GIS) is trying to capitalize on that demand by launching cereals that have more protein added to them. He added that the company had launched Nature Valley protein granola last year that was a great success.
Speaking on consumer preferences, Powell mentioned: “Consumers are interested in fiber, some would like to avoid gluten, so we have gluten free products, and those are some of the changes in that breakfast category.”
On the future of the company’s products, ten years from now, Powell said: “So one of the things that is not changing is consumers just love cereals that tastes good. ‘Lucky Charms’ is one of our fastest growing cereals. One of the things that we have done recently is we are advertising many of the consumers of that product are adults, and so we advertise – you know who you are, and I bet you’re eating it.”
The CEO of General Mills Inc. (NYSE:GIS) added that the company is advertising its products to adults, and that cereals are its fastest growing products because of their great taste profile and also because of consumers enjoying the same.
Powell said that the company has seen a growth of 20% over the last seven years and has also been growing its market share in six of the last seven years and that General Mills Inc. (NYSE:GIS) has been innovating and communicating constantly in a manner that works.