General Mills just announced its 5 year growth plan. The Hispanic component plays an important role in General Mills overall strategy.
It began a progressive increase of its Hispanic efforts last July. Ian Friendly, Chief Operating Officer of General Mills' US retail operations, said during an analyst meeting yesterday that in FY09 his company increased Hispanic media spending by 70% to USD 66 million and another increase is expected for this financial year. The company intends to grow annual sales by 22.4% from USD 14.7 billion for FY09 to USD 18 billion in FY15.
The plan is to focus on growing consumer segments such as baby boomers, Hispanics, millennial families, and the rising middle class in emerging markets around the world, Brazil included.
The Minneapolis package-food company will increasingly target Hispanic and baby boomers, as Chris O'Leary, Chief Operating Officer of General Mills, revealed at a Consumer Analysts Group meeting in New York yesterday.
On July, the consume- package-food company told Portada that “In 2010 Honey Nut Cheerios will expand its successful Hispanic campaign. We’ll continue to focus on the role Cheerios can play in helping to reduce the risk of heart disease.” The following August the outreach focus on PF efforts and the expansion of its Que Rica program.
In August General Mills announced the renewal and expansion of its existing partnership with Univision Communications, in an attempt to extend its Hispanic marketing platform Que Rica
Finally, last September, at Portada’s Third Annual Hispanic Digital and Print Media Conference, during his keynote speech Rodolfo Rodriguez, Multicultural Marketing Director of General Mills, explained that his company has more than doubled its Hispanic marketing budget and was undertaking more than 15 Hispanic marketing initiatives. (Read more about Rodriguez’s keynote speech here)
Yesterday at the Consumer Analysts Group meeting in New York, General Mills CFO Friendly said “we're anticipating a rise in multicultural consumers, particularly Hispanics, plus a growing number of aging baby boomers and the emergence of millennials as the next generation with significant influence in the marketplace.”
Fiber One, Multigrain Cheerios, Honey Nut Cheerios, Progresso soups and Yoplait yogurt are the main brands among baby boomers. AdAge reports that “what was a $600 million category in U.S. grocery is a $5 billion category today, and the aging demographic is now looking for products that have added health benefits, such as probiotics.”
All these products related to a healthy life are being promoted with a special attention to Hispanic families’ culture, as Rodriguez pointed out during his keynote speech at our conference: “a multi-touch point Hispanic platform that allows us to introduce the General Mills portfolio of brands by establishing an emotional connection with Spanish-dominant Latina moms.”
General Mills is present in China, India and Brazil, which, combined, represent 20% of the global food industry's growth.