![]() That’s the key to growing a brand while also having a broader impact for good. Fortunately, our brands have a rich heritage and amazing stories, so we are very clear about what each brand’s purpose is and its larger ambition is as a force for good in the world.Įach brand has a unique way to bring that to life by solving problems or by delivering joy. We have more than 100 brands in over 30 categories at General Mills. And, with our size and resources, we know we can make an impact.Īziz: So, with such a diverse range of categories and brands, how do different brands manifest their purpose? It’s our job to continue making food for people and being an even bigger force for good. The reason we exist is ‘to make food the world loves’ Today’s circumstances require us to make food the world loves and needs. Today, General Mills is focused on reducing hunger, regenerating our planet, and strengthening communities. Then, he shared the proprietary information with competitors to advance the entire industry. It started with our founder, Cadwallader Washburn, who after a plant explosion, improved the facility and plant operations to ensure the safety of the employees. Hiranaga: Being a force for good is in our DNA. Please tell us how you articulate the purpose and vision of General Mills? These categories are the largest segments for Tyson, McCormick, Kraft Heinz, and Conagra Brands, giving these companies the greatest exposure to private label within our coverage.Aziz: Thank you for sharing that Brad. Food coverage, processed cheese, frozen vegetables, pepper, and fresh meat are categories with highest private label penetration," said Bernstein, " all commoditized or non-value added goods, generally with single ingredients. So which food and beverage categories have the highest private label penetration? "Lower retailer profitability typically leads retailers to demand greater promotional spending from suppliers, push back harder on price increases, and mark up products more, which in turn hurts gross margins and volumes for food manufacturers." US consumers "remain resilient albeit worse off than they were a year ago, with cracks just starting to show including Walmart reporting a weakening US consumer and a resurgence in private label during recent earnings calls," noted Bernstein. Source: NielsenIQ, Bernstein analysis and estimates Brands under pressure "These branded price gap increases could contribute to continued market share losses to private label." Food sector has experienced a year on year percentage price gap increase of ~300bp year-to-date. ![]() "Percentage price gaps between branded foods and private label products have increased year-to-date on average with Smucker's, General Mills, and McCormick seeing the largest increases. "By August 2021, private label market share had declined -52bp on a rolling 12-week basis compared to the same period in 2019. But as record price increases from branded players took hold this year, the trend reversed rapidly, and private label market share is now up +85bp YoY and is currently 19.6% of the market-32bp higher than in 2019. In a note issued Thursday, they explained that in the years leading up to the pandemic, private label consistently took market share from branded players, but this reversed in 2020 as government stimulus, shifts in spending, and retailer prioritization of branded products took hold. Bernstein: Private label steals share as branded players take 'record pricing'Īccording to analysts at Bernstein, private label $ market share reached 19.6% over the past 12 weeks in US measured retail channels-up ~85bp year-on-year-" as branded competitors took record pricing." There are approximately 150 Smart Way products on shelves nationwide today, with additional items hitting stores later this year, said the firm, which posted a 5.8% rise in same store sales (excluding fuel) in the second quarter and a 10.2% increase in sales of private label products in the same period. Smart Way provides a budget option to Kroger’s expanding private label portfolio, which includes the namesake Kroger brand, Simple Truth, Private Selection, Home Chef and Heritage Farm. By adding a simplified opening price point brand strategy to Our Brands portfolio, we will further cater to every customer, every time." " Smart Way is an exciting, eye-pleasing product line that will be easy for customers to find. “ As our customers face an ongoing inflationary environment, we know they are looking to stretch their dollars further than ever before," said SVP and chief merchant and marketing officer Stuart Aitken. Emulsifiers, stabilizers, hydrocolloids.Chocolate and confectionery ingredients.Carbohydrates and fibers (sugar, starches).Plant-based, alt proteins, precision fermentation.
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