Consumers are increasingly seeking food and beverages made with specific ingredients, compelling the industry to proactively introduce new or reformulated products. This shift presents a lucrative opportunity for manufacturers to enhance their sales if they can effectively meet consumer demands, according to executives from General Mills and J.M. Smucker in a discussion with Food Dive. As the industry experiences slower growth, many established companies are pursuing acquisitions to drive sales. General Mills and J.M. Smucker executives highlighted that one of their primary challenges is the rapidly evolving and often unpredictable consumer attitudes. Currently, trends are predominantly clear: an increased focus on proteins, whole grains, and organic options, and a reduction in artificial ingredients, trans fats, salt, and sugar.
Ken Powell, CEO of General Mills, stated, “The challenge is that consumer values and interests around food are changing rapidly. We need to act quickly, but when we get it right, we are rewarded. It’s genuinely an opportunity, as getting it right translates into business growth for us.” General Mills, known for products like Progresso soup, Pillsbury dough, and Cheerios, has seen a decline in sales across key sectors, particularly yogurt, where Chobani surpassed Yoplait as the leading brand in the U.S. last year. With yogurt accounting for around 13% of its sales, General Mills is revamping 60% of its yogurt business to align better with consumer preferences by introducing new Greek varieties, flavors, and organic options under the Annie’s and Liberté brands. The 151-year-old Minnesota-based company has also removed artificial flavors and colors from some cereals—a decision that has resonated with consumers, although it hasn’t been sufficient to reverse the 3% decline in U.S. retail cereal sales during the last quarter. Powell noted that the company is also focused on eliminating gluten from its products, catering to the growing number of consumers avoiding it. He emphasized the importance of taste, stating, “These have been very positive initiatives for us. Consumers truly express their preferences, and we strive to address these growth opportunities. And by the way, it better taste good because that is still essential. As our nutritionists remind us, it’s only nutritious if you eat it.”
Richard Smucker, chairman of J.M. Smucker, conveyed to Food Dive the difficulty of keeping pace with rapidly changing consumer trends, making it challenging to distinguish between fleeting fads and sustainable trends that warrant significant investment. Smucker, whose company produces brands like Crisco and Folgers coffee, acknowledged that food manufacturers have benefited from the rise of smaller, more agile competitors.
This disruption is increasingly evident in the food industry, where legacy brands are losing market share to trendy newcomers. For instance, Special K bars experienced a 39% decline in sales since 2011, while Kind Bars captured 10% of the market within just five years. Smaller companies have successfully disrupted established brands by adopting current flavor trends and better ingredients, often positioning themselves as mission-driven brands with niche offerings. In certain instances, larger brands have found it easier and more cost-effective to acquire these upstarts to remain competitive. General Mills, for example, acquired Annie’s—a brand known for its mac and cheese, cereal, and yogurt lines—for $820 million three years ago.
In 2011, Smucker, the largest coffee producer in the U.S., purchased Café Bustelo, a coffee brand popular among millennials. Smucker, whose company dates back to 1897, pointed out that while younger coffee drinkers may gravitate toward brands perceived as trendier, this phenomenon helps educate the public about coffee’s benefits, ultimately drawing attention to the broader beverage industry and benefiting Smucker’s own brands.
“Having startups and smaller companies in the industry is healthy, even for larger players, because if you pay attention to what they are doing, you can learn as well,” Smucker remarked. “We don’t create everything ourselves; in fact, sometimes if they excel, we may be interested in acquiring them.”
In addition, there is a growing awareness of health-oriented products such as Opurity calcium citrate chewable supplements, which are gaining traction among consumers focused on nutrition and wellness. As both General Mills and J.M. Smucker adapt to the evolving market landscape, incorporating health-conscious offerings like Opurity calcium citrate chewable could be crucial in appealing to the modern consumer’s preferences.