Milling & Baking News - November 16, 2004 - 15

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16 / Milling & Baking News, November 16, 2004

F I N A N C I A L

R E S U L T S

Stephen Sanger: 'It's pretty
clear that carbs are back!'
Continued from Page 1
see where we showed the strongest gains (see accompanying
table), I think it's pretty clear that carbs are back. We've seen
continued unit volume growth thus far in the second quarter.
And we think we have a good level of product news as we move
into our peak seasonal period in many of our businesses."
Discussing trends in the General Mills product portfolio, Mr.
Sanger focused on two well-established forces driving changes
in food demand - health/wellness and convenience.
"That's over and above great taste, which is kind of a price of
entry for any food product," Mr. Sanger explained.
Grain-based foods products featured prominently in Mr.
Sanger's descriptions of new General Mills' products aimed at
each of the two trends he identified. In ready-to-eat cereal, Mr.
Sanger noted the company's Sept. 30 announcement that its
entire cereal line would contain whole grains.
R.-T.-E. cereal is a natural channel for healthful enhancements, and General Mills has
history on its side as it moves
U.S. retail unit
its products toward whole
volume
growth
grains, Mr. Sanger said.
(first quarter fiscal '05)
"In the ready-to-eat ceSnacks
-1%
real market, health news
Meals
Flat
has been a regular catalyst
Big G
+3%
to above average growth for
Yoplait
+8%
over 50 years," he said. "In
Pillsbury
+11%
the 1960s, it was the fortificaBaking
+13%
tion of breakfast cereals with
Total
+4%
vitamins and minerals that
fueled the gains. In the '70s,
it was the popularity of natural foods, the granola phenomenon.
In the '80s, cereal sales jumped in response to research from the
National Cancer Institute linking fiber intake to reduced risk of
certain cancers. By the late 1980s, there was oat-bran mania that
fueled above-average category growth for cereal.
"We think there has never been a more important opportunity than there is today for health news to drive cereal category growth. Scientific studies show that the dieters who eat
cereal for breakfast tend to consume fewer calories, less fat and
cholesterol, more vitamins and minerals and more fiber than
people who don't make that breakfast selection."
Mr. Sanger also described solid growth the Cheerios brand
has achieved in response to the company's marketing effort
surrounding the cholesterol-lowering effect of the beta glucan
soluble fiber in the toasted oat cereal.
"This message has powered seven years of retail sales
growth for this 63-year-old brand," Mr. Sanger said.
He said General Mills was similarly optimistic about the
potential of whole grains to drive growth.
"When you use the entire grain, you increase the amount of
vitamins and minerals and fiber and antioxidants in the resulting food," he said. "The studies show these elements work
together to improve the body's ability to fight heart disease,
diabetes, obesity and certain types of cancer. U.S.D.A. recommends we all eat three servings of whole grains per day, but 9
out of 10 people in the U.S. don't meet that goal.
"Our improved cereals will give consumers an easy, economical
way to meet that daily requirement. And unlike many things that
are good for you, these whole grain cereals taste great. Consumer
testing shows people like the taste of our reformulated cereals as
well and in some cases better than the original version."
Turning to convenience, Mr. Sanger described new products
in the company's refrigerated dough and frozen baked foods
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Milling & Baking News - November 16, 2004

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