Longtime General Mills CEO Steve Sanger departed in late September. (It wasn’t a complete surprise—he’d been expected to announce his departure sometime in 2007 or 2008.) Powell has been a C-level executive at the company for years, so (as at Cargill) there’s no reason to expect any big changes in Golden Valley.
Under Sanger, General Mills (NYSE: GIS) has responded skillfully and nimbly to trends (making all its cereals whole grain to appeal to the health conscious, but also adjusting to higher grain costs), and since its Pillsbury purchase a few years back, has been expanding its noncereal offerings, such as Yoplait yogurt and Progresso soups. In acquiring Pillsbury, General Mills not only more than doubled its size, it also acquired an international presence, which is “now the fastest-growing part of our company,” Powell says.
Powell sees that presence continuing to grow. He also sees General Mills’ noncereal business expanding, in large part thanks to innovations within existing brands (light and low-sodium versions of Progresso soups, for instance). That said, he doesn’t think the cereal market has plateaued: “We look at cereal now as by far our largest global business.” After a sometimes difficult merging with Pillsbury’s business, General Mills looks stronger than ever. Investors have been generally positive about performance, too.
