General Mills launches US$130M transformative programme 

USA – General Mills has announced a global transformation program that will incur approximately US$130 million in costs as the US food giant aims to enhance productivity.

The plan, which received management approval on May 20, is designed to improve productivity by optimizing end-to-end business processes through targeted organizational actions.

While details of the initiative are limited, it follows a disappointing set of results reported in March for the third quarter of General Mills’ fiscal year 2025.

The company reported a 5% decline in organic sales for the period, which CEO Jeff Harmening admitted fell short of expectations, with volume down by four percentage points.

Additionally, General Mills has revised its full-year guidance, now expecting organic sales to decrease by 1.5% to 2%, compared to its earlier expectation of flat to higher sales.

Of the anticipated US$130 million in total charges, approximately US$70 million will be recorded in the fourth quarter of 2025, primarily due to severance expenses.

General Mills indicated that it aims to complete most of the actions related to the transformation initiative by the end of fiscal 2028, resulting in total charges estimated at around US$130 million, with roughly US$120 million in cash.

Although General Mills did not provide further specifics, the company suggested that the initiative may have more extensive implications.

In the filing, it noted, “The estimate of costs that the company expects to record, and the timing thereof, are subject to a number of assumptions, and actual results may differ from current expectations.”

In discussing the third-quarter results in March, Harmening committed to reinvesting US$100 million from targeted savings in the upcoming 2026 financial year.

“We’re reviewing new cost-efficiency initiatives that are anticipated to generate at least US$100 million in additional savings in fiscal 2026, with further savings expected in fiscal 2027 and beyond. Our number one priority is to accelerate our organic sales growth by delivering remarkable consumer experiences across our leading food brands, which will lead to stronger volume and improved market share performance,” said Harmening.

General Mills is on track to achieve a 5% savings in cost of goods sold this year through its Holistic Margin Management (HMM) program and expects to replicate that in fiscal 2026, amounting to over US$600 million in gross productivity savings, as Harmening mentioned in March.

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