MINNEAPOLIS — After a difficult 2026 fiscal year that fell short of expectations, General Mills Inc. is accelerating efforts to revitalize its portfolio “to meet consumers where they are,” namely in its North America Retail (NAR) business, said chief operating officer Dana McNabb.
General Mills’ net sales for 2026 fell 5% to $18.42 billion, with organic sales declining 2% on 1% decreases in both price/mix and volume. The NAR’s reported net sales for the year dropped 11% to $10.57 billion and declined 3% organically, with the latter reflecting decreases of 2% in price/mix and 1% in volume. Divestitures and/or acquisitions were a notable headwind for both top-line results. However, NAR held or added pound share in 65% of its top 10 US categories, the company said.
The fourth quarter ended May 31 brought more encouraging signs, as General Mills’ overall net sales inched up 1% to $4.61 billion, with organic sales flat on a 2% rise in price/mix and a 2% dip in volume. Quarterly net sales for NAR were down 4% but came in flat organically. Among NAR segments, fourth-quarter net sales gained 5% each for US Snacks and US Meals & Baking Solutions. Net sales fell 19% for the Big G Cereal & Canada division, recently formed when General Mills combined the US Morning Foods and Canada units following the wrap-up of its US yogurt divestiture.
McNabb, who took the COO reins on June 1, said the improvements signal that General Mills’ strategy is taking hold as the company pursues steady and profitable organic sales growth.
“We improved base prices across key NAR businesses, stepped up our innovation where it matters and launched key brand campaigns,” McNabb said during a conference call to discuss the fiscal 2026 results. “All of these actions helped drive household penetration growth and significantly improved our base volume trends.
“And yet, we didn’t deliver on the top- and bottom-line targets we set at the beginning of the year. Some of that was due to a tougher-than-expected environment, with softer category volume growth and more consumers buying on promotion. Additionally, we didn’t execute to our standards on two key businesses that drove outsized pressure on our fiscal ’26 results, specifically Totino’s in NAR and (Blue) Wilderness in North America Pet. In fiscal ’27, we’re learning from those challenges and adjusting our plans accordingly.”
General Mills said retail sales of Annie’s Super Mac, with 15 grams of protein and 6 grams of fiber per serving, climbed over 80% in fiscal 2026.
| Photo: ©JAMMER GENE – STOCK.ADOBE.COMOutlining the game plan
From the consumer’s perspective, General Mills expects more of the same in the fiscal year ahead.
“We expect our consumers and categories to remain under pressure,” McNabb said. “Rather than wait for a change in the environment, we’ve built plans to meet consumers where they are. This includes a significant increase in innovation and renovation across our biggest brands, centered on the benefits consumers are seeking today.”
In building its consumer growth plans, General Mills aims to zero in on “the benefits they’re looking for in their food,” which the company dubs “demand spaces,” McNabb said.
“It’s the way we think about growth — not defined by a category, but rather a job to be done for consumers,” McNabb said. “In human food, this includes better-for-you offerings like protein, fiber and clean label; bold flavors; and fun and indulgent offerings. In pet food, this means continuing to follow the humanization trend with more benefit-led offerings that pet parents can feel good about feeding to their pets. Collectively, these are huge demand spaces, representing hundreds of billions of dollars in retail sales, and they’re growing.”
For example, the company is sharpening the focus of its Cheerios brand on better-for-you benefits, such as nutrition, heart health and more protein.
“In fiscal ’26, Cheerios grew household penetration for the first time in more than five years and meaningfully improved both pound and dollar sales trends,” McNabb said. “The Cheerios Protein platform is already nearly $100 million in retail sales, and in fiscal ‘27 we will extend protein news to Honey Nut Cheerios, the No. 1 brand in the category.”
Nature Valley also rekindled household penetration growth in fiscal 2026, and General Mills is planning for additional improvement.
“We’re leaning into the strongest growth trends in snack bars, including protein, clean label, and fun and indulgence,” McNabb said. “This includes new Nature Valley Packed protein bars, clean-label highlights on our core Crunchy line, and tasty, fun innovation with soft-baked kid bars and PB&J bars. And we’re doubling down on Nature Valley granola cereal, which generated double-digit retail sales growth in fiscal ’26, with taste-forward renovation news and packaging innovation with new cups and tubs.”
McNabb also outlined what’s in store for other NAR brands in fiscal 2027:
• Annie’s: The business turned in a strong year in fiscal 2026, seeing growth in pounds, dollars and household penetration.
“We’ll build on that momentum in fiscal ’27 by extending Annie’s into spaces where it already has a right to win,” McNabb said.
In Mac & Cheese, General Mills is expanding offerings and availability for Annie’s Super Mac, which has 15 grams of protein and 6 grams of fiber per serving and grew retail sales over 80% in fiscal 2026, according to the company.
“Annie’s will also expand its lunchbox business, including renovating our core fruit snacks with more real fruit and launching functional-first innovation with Annie’s Nature Pals fruit snacks that include 6 grams of fiber per serving,” McNabb said. “And we’ll surround it all with Annie’s ‘ingredients for childhood’ messaging, using influencers and social-first execution to remind parents why Annie’s remains such a good choice for their family.”
• Old El Paso: The Mexican food brand “competed well in fiscal ’26,” holding pound share and growing household penetration in the category,” McNabb said. This year will bring a stronger emphasis on bold flavors through innovation such as new taco sauces, broths, soups and blasted stuffed nachos, plus a new partnership with Tabasco.
“And we’re tapping into the better-for-you trend with new Protein Advantage taco shells, the first hard shell in the category with at least 10 grams of protein per serving,” McNabb said.
• “Disruptive” offerings: General Mills is expanding distribution of La Tiara shells and seasonings to reach consumers seeking a more authentic Mexican experience. Likewise, the company is broadening availability of the new Ghost performance nutrition bars, which offer 20 grams of protein, and growing awareness of the Ghost cereal line. McNabb said General Mills also is responding to rising interest in Asian flavors in the frozen appetizer set — a segment growing by double digits – by bringing its Wanchai Ferry frozen dumpling brand from China and launching in club stores this summer.
“In addition to big innovation and renovation news on our core brands, we’re also going after disruptive growth opportunities in fiscal ’27 by leveraging new brands to get into fast-growing spaces,” she said, adding, “Importantly, these are all premium offerings, helping NAR drive positive price/mix as we move into new growth spaces.”
Innovation on tap for General Mills’ Totino’s brand includes added protein, new flavors and extending its Ultimate Pizza line.
| Photo: General MillsFixing Totino’s and Blue Wilderness
This year, General Mills will be “moving with urgency” to fix two businesses that McNabb said “caused outsized declines for us last year”: Totino’s (snacks) and Wilderness (pet food). She said Totino’s pizza and hot snacks accounted for almost half of NAR’s retail pound declines in fiscal 2026, while Blue Wilderness dog food represented over 50% of pound decreases in North America Pet.
“We’re tackling all elements of remarkability in fiscal ’27 to get these businesses back on track,” McNabb said. “For Totino’s, that means addressing consumer value with the right merchandising plan, bringing protein news, launching bolder flavor news on hot snacks, and leaning into our new Ultimate pizza line, which is off to a great start. For Wilderness, we’re taking steps to improve our entire value proposition, renovating the packaging, optimizing our offerings for e-commerce, and leaning harder into protein-forward innovation and communication.
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