Dive Brief:
- General Mills has announced the closure of its in-house innovation unit, G-Works, and a temporary halt on additional investments by its venture capital arm, 301 Inc.
- The company is reevaluating its approach to new growth initiatives, according to General Mills spokesperson Chelcy Walker. Approximately 40 employees are expected to be affected by this decision.
- Amidst economic uncertainty and rising inflation, companies in the food and beverage industry are focusing on cost-cutting and margin improvement strategies.
Dive Insight:
General Mills has introduced a new Strategic Growth Office, leading to the discontinuation of G-Works and the pause in investments by 301 Inc. While details on this new initiative are scarce, it marks a shift in the company’s investment strategy.
G-Works’ projects include Carbe Diem, a low-carb pasta brand, Good Measure, a low-sugar food maker, and Doolies, a snack brand tailored for digestion. 301 Inc. has invested in companies like BeeHero, Everything Legendary, and PetPlate.
Despite these changes, existing investments like Carbe Diem will not be impacted. General Mills CEO Jeff Harmening emphasized the company’s commitment to innovation, with new product sales contributing significantly to revenue growth.
Last summer, Asheesh Saksena was appointed as the chief strategy and growth officer, bringing his experience from companies like Gap and Best Buy to drive growth across industries.