Business Analysis of General Mills

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of General Mills

GENERAL MILLS

Business Overview

General Mills, Inc. manufactures and markets branded consumer foods in the United States. The company operates in four segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, shelf stable and frozen vegetables, and ice cream and frozen desserts, as well as grain, fruit and savory snacks; and various organic products, including nutrition bars, meal kits, salty snacks, and ready-to-eat cereal. The company markets its products under the Annie's, Betty Crocker, Bisquick, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Haagen-Dazs, Helpers, Jeno's, Jus-Rol, Kitano, Kix, La Saltena, Larabar, Latina, Liberte, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Yoki, and Yoplait names. It also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce grocery providers, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores, as well as drug, dollar, and discount chains. It operates 433 ice cream parlors; and franchises 356 branded ice cream parlors. General Mills, Inc. also exports its products primarily to Caribbean and Latin American markets. The company was founded in 1928 and is based in Minneapolis, Minnesota.

General Mills

General Mills


R&P Rank: 165
Sector: Consumer Goods
Industry:Diversified Food
H.Q Location:Minnesota
Website: www.generalmills.com
Company Address:
NUMBER ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Ph:763-764-7600

Business Analysis of General Mills

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how General Mills compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by General Mills to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of General Mills with an interactive chart.

  1. Revenue Growth: General Mills reported a revenue growth of -6.1% year-on-year during 2016. Diversified Food Industry grew at 12.9% in the same period
  2. COGS share of Revenues: As a percentage of revenue, General Mills spent 64.8% of its total revenues on COGS. Diversified Food industry average (COGS share of revenue) in the same period was 67.8%
  3. R&D share of Revenues: General Mills R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, General Mills spent 18.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Diversified Food industry average SG&A spending in the same period was 16.7%
  5. Inventory share of Revenues: As a percentage of revenue, General Mills spent 8.5% of its total revenues on Inventories. Diversified Food industry average Inventory spending in the same period was 10.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, General Mills invested 12.4% of its total revenues on Accounts Payable (A/P) Diversified Food industry average Accounts Payable investment in the same period was 10.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, General Mills invested 8.2% of its total revenues on Accounts Receivable (A/R). Diversified Food industry average Accounts Receivable investment in the same period was 6.4%
  8. PP&E share of Revenues: As a percentage of revenue, General Mills invested 22.6% of its total revenues on Property, Plants, and Equipments (PP&E). Diversified Food industry average PPE investment in the same period was 22.8%
  9. Intangibles share of Revenues: As a percentage of revenue, General Mills invested 80.2% of its total revenues on Intangibles. Diversified Food industry average Intangibles investment in the same period was 139.8%
  10. Net Margins: General Mills Net Margins in the year 2016 were 10.2%. Diversified Food industry average Net Margins in the same period were 7.0%

Sector and Industry Association of General Mills

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

General Mills is associated with Consumer Goods Sector and Diversified Food Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of General Mills

With $16.6 billion revenues, General Mills ranked number 2 of all the companies in the US Diversified Food industry. There were a total of 18 public companies in the US Diversified Food industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Diversified Food industry by revenues during 2016 were:

  1. Kraft Heinz ($26.5 billion)
  2. General Mills ($16.6 billion)
  3. Kellogg ($13 billion)
  4. Conagra ($11.6 billion)
  5. Hormel Foods ($9.5 billion)
  6. Campbell Soup Company ($8 billion)
  7. Smuckers ($7.8 billion)
  8. TreeHouse Foods ($6.2 billion)
  9. Post Holdings ($5 billion)
  10. WhiteWave Foods ($4.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of General Millsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of general-mills

Kraft Heinz (KHC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kraft Heinz Co with $26 billion revenues in the year 2016 was the number 1 Diversified Food company. Read this report to know the top competitors of Kraft Heinz and identify growth and cost optimization opportunities of Kraft Heinz

Kellogg (K) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Kellogg Co with $13 billion revenues in the year 2016 was the number 3 Diversified Food company. Read this report to know the top competitors of Kellogg and identify growth and cost optimization opportunities of Kellogg

Conagra (CAG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Conagra Brands Inc. with $12 billion revenues in the year 2016 was the number 4 Diversified Food company. Read this report to know the top competitors of Conagra and identify growth and cost optimization opportunities of Conagra

Hormel Foods (HRL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Hormel Foods Corp with $10 billion revenues in the year 2016 was the number 5 Diversified Food company. Read this report to know the top competitors of Hormel Foods and identify growth and cost optimization opportunities of Hormel Foods

Campbell Soup Company (CPB) Business Analysis – Analyze Historical Performance, Strategic...

Campbell Soup Company with $8 billion revenues in the year 2016 was the number 6 Diversified Food company. Read this report to know the top competitors of Campbell Soup Company and identify growth and cost optimization opportunities of Campbell Soup Company

Smuckers (SJM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

J. M. Smucker Company with $8 billion revenues in the year 2016 was the number 7 Diversified Food company. Read this report to know the top competitors of Smuckers and identify growth and cost optimization opportunities of Smuckers

Revenues Analysis

General Mills (GIS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of General Mills Inc (GIS) from 2012 to 2016. General Mills generated a total of $16.6 billion revenues during 2016. General Mills reported a revenue growth of -6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in May.

General Mills (GIS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of General Mills Inc (GIS) from 2002 to 2016. General Mills generated a total of $16.6 billion revenues during 2016. General Mills reported a revenue growth of -6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in May.

General Mills (GIS) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of General Mills Inc (GIS) revenue growth with Diversified Food industry growth during the last five years from 2012 to 2016. General Mills reported a revenue growth of -6.1% year-over-year during 2016. The Diversified Food industry growth was 12.9% year-over-year during 2016. General Mills growth was slower than the industry during 2016.