“`html
General Mills Faces Pressure Amid Health Movement
General Mills Inc. (GIS), based in Minneapolis, MN, is responding to the ‘Make America Healthy Again’ (MAHA) movement led by US Health and Human Services Secretary Robert F. Kennedy Jr. The campaign targets ultra-processed foods, and as a result, General Mills has committed to eliminating artificial dyes from its US product lines by 2027. Achieving this goal will require significant investment in research and development to find natural replacements for its popular products.
Financial Declines and Stagnating Demand
General Mills has experienced a decline in both earnings and net sales year-over-year, as consumers increasingly choose lower-priced private-label brands. Consensus estimates indicate continued negative earnings growth through 2026. The company is facing stiff competition from brands like Kraft Heinz, Conagra, and Mondelez, along with changing consumer preferences towards healthier options.
General Mills Stock Performance
With the current US stock market in a robust bull phase, General Mills is underperforming the S&P 500 Index and is expected to continue facing challenges ahead. To regain momentum and align with evolving consumer preferences, GIS will need substantial investment in adapting its product offerings.
“`
