General Mills closes innovation unit, changes investment strategy
The firm said the changes are part of a broader shift in how it pursues new growth.
USA – General Mills has announced the closure of G-Works, its in-house innovation unit, and the pausing of additional outside investments through its venture capital arm, 301 Inc.
These changes are part of a broader strategy aimed at pursuing new growth opportunities, according to Chelcy Walker, a spokesperson for the company. The Minnesota Star Tribune reported that this decision will result in approximately 40 job losses.
Walker explained that General Mills is shifting its approach to new growth initiatives by establishing a new Strategic Growth Office, which has led to the closure of G-Works and the suspension of new investments from the 13-year-old 301 Inc. unit. However, she did not provide further details regarding this new initiative.
G-Works’ portfolio includes companies such as Carbe Diem, which produces low-carb pasta; Good Measure, a low-sugar food maker; and Doolies, which specializes in snacks designed for digestive health.
Meanwhile, 301 Inc. has invested in several innovative ventures, including the precision pollination startup BeeHero, plant-based burger company Everything Legendary, and PetPlate, which offers meal delivery services for dogs.
Walker clarified that this change in General Mills’ investment strategy would not affect Carbe Diem or its current 301 Inc. portfolio.
At the Consumer Analyst Group of New York conference last month, General Mills CEO Jeff Harmening noted that the company has increased its focus on innovation in recent years, with net sales from new product innovations rising nearly 20% this year.
“We’re excited about our innovation pipeline, including several launches that have the potential to make significant contributions to growth in fiscal 2026,” he stated.
In the previous summer, General Mills appointed Asheesh Saksena as its chief strategy and growth officer. Harmening emphasized that Saksena, a former executive at Gap and Best Buy, has a proven track record of driving growth across various industries.
As companies in the food and beverage sector look to cut costs and boost margins amid consumer pullbacks due to inflation and economic concerns, General Mills, which manufactures and markets processed consumer foods, remains a key player in the market.
The company is known for many well-known brands, including Gold Medal flour, Annie’s Homegrown, Lärabar, Cascadian Farm, Betty Crocker, Nature Valley, Totino’s, Pillsbury, Old El Paso, and Häagen-Dazs.
It also produces breakfast cereals under the General Mills name, such as Cheerios, Wheaties, Chex, Lucky Charms, Trix, Cocoa Puffs, and Monster Cereals.
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