General Mills Targets $3B in Savings as It Maps Fiscal 2027 Growth Plan

Key Points

• General Mills is targeting approximately $3 billion in cost savings from fiscal 2027 through fiscal 2030, including about $750 million in fiscal 2027, through margin management, supply-chain redesign, process simplification and digital tools such as AI forecasting.
• The company’s fiscal 2027 growth plan focuses on stronger organic sales through product innovation, improved consumer value and portfolio concentration in higher-potential categories and markets.
• Shareholders preliminarily approved all five management proposals, while a proposal restricting blank-check preferred-stock authority received majority support; proposals on human-rights and pesticide disclosures failed to gain majority backing.

General Mills NYSE: GIS Chairman and Chief Executive Officer Jeff Harmening told shareholders at the company’s 98th annual meeting that fiscal 2026 ended with fourth-quarter results in line with expectations and improving volume trends, household penetration and innovation. He said the company is aiming for stronger sales and earnings growth in fiscal 2027 after a challenging prior year marked by slower category growth, a pressured consumer backdrop and higher costs of generating volume.

Harmening said General Mills reduced everyday prices on roughly two-thirds of its North America retail portfolio during fiscal 2026 as consumers remained value-conscious. The company also improved share performance in North America retail, North America pet and North America foodservice, while its international business delivered strong sales and operating-profit growth, he said.

Portfolio changes and fiscal 2027 priorities

The company continued reshaping its portfolio during fiscal 2026, completing the divestiture of its U.S. yogurt business and announcing divestitures of its Brazil business, which has since closed, and its mainland China Häagen-Dazs Shops business. Harmening said the moves will concentrate General Mills on categories and geographies where it sees its strongest long-term opportunities for profitable growth.

For fiscal 2027, the company outlined three priorities:

• Strengthen organic sales growth through more compelling consumer experiences.
• Create funding for growth through cost savings, process simplification, efficiency efforts and supply-chain redesign.
• Maintain disciplined capital allocation through cash generation, business reinvestment, dividend support and debt reduction.

Harmening said the company’s “remarkable experiences” framework evaluates brands across product, packaging, brand communication, omnichannel execution and value. Planned innovation and renovation will focus on consumer benefits including protein and fiber, bold flavors, indulgence and more humanized pet-food offerings.

Examples cited by Harmening included Honey Nut Cheerios protein cereal, improved Häagen-Dazs Belgian chocolate ice cream, Annie’s Fiber Pals fruit snacks and Blue Buffalo Love Made Fresh dog food. He said first-quarter fiscal 2027 results, reported one week before the meeting, represented an “encouraging start” with improved top-line performance supported by product innovation and renovation.

$3 billion cost-savings target

General Mills expects to generate approximately $3 billion in cost savings from fiscal 2027 through fiscal 2030 through its holistic margin management program, transformation initiative and other actions. Harmening said the company expects about $750 million of savings in fiscal 2027.

About $2 billion of the multiyear target is expected to come from holistic margin management, while the transformation initiative is expected to provide the remaining $1 billion. Harmening said the company is using digital tools in its supply chain, including AI-driven demand forecasting, manufacturing optimization and logistics scheduling. The transformation program will be focused largely on the supply chain, including capacity utilization, network design, innovation speed, packaging flexibility and e-commerce capabilities.

Addressing competition from private-label and smaller brands, Harmening said the company’s earlier pricing actions helped address value gaps and “stunted” private-label share growth. He said General Mills has increased the pace of new-product innovation by roughly 50% over the past several years and improved its market-share position in most of its top North America retail categories, as well as in foodservice and international.

Preliminary shareholder voting results

General Counsel and Corporate Secretary Karen Wilson Thissen said preliminary results indicated that shareholders approved all five management proposals. Those included the election of 12 directors, an advisory vote on executive compensation, ratification of KPMG as independent auditor, officer exculpation provisions permitted under Delaware law and a federal forum provision for Securities Act claims.

Stephen W. Sanger was recognized for his board service and did not stand for re-election.

Preliminary voting also indicated that shareholder proposals concerning human-rights disclosures and pesticide-reduction disclosures did not receive majority support. However, a shareholder proposal related to blank-check preferred stock received majority support.

Matt Prescott, president and chief operating officer of The Accountability Board, said Institutional Shareholder Services and Glass Lewis had recommended support for the blank-check preferred-stock proposal. Thissen said General Mills’ board opposed the measure, arguing that its existing authority to issue cumulative preference stock had never been used for anti-takeover purposes and that restricting the authority could limit capital-structure and strategic flexibility.

The board also opposed the proposals seeking reports on the effectiveness of human-rights due diligence and regenerative-agriculture outcomes, including pesticide reduction. Thissen said the company already provides disclosures through its Global Responsibility Report and Slavery and Human Trafficking Statement, and that requiring pesticide-use tracking could add cost and complexity for farmers.

Final voting results, including votes received before the meeting’s adjournment, are expected to be reported in a Form 8-K filing with the Securities and Exchange Commission within four business days.

About General Mills (NYSE:GIS)

General Mills, Inc is a global food company that manufactures and markets branded consumer food products. Its portfolio includes cereals, snacks, refrigerated and shelf-stable meals, baking products, yogurt, and pet food.

The company's brands include Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old El Paso, Yoplait, Blue Buffalo, and Häagen-Dazs in markets where it owns or licenses the brand. General Mills sells its products through grocery stores, mass merchants, convenience stores, e-commerce channels, restaurants, and other foodservice providers.

General Mills traces its history to the Minneapolis Milling Company, founded in 1856, and adopted the General Mills name in 1928.

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