General Mills Opens New Innovation Center in China
15 Jul 2014 --- General Mills has opened its first innovation, technology and quality center in China, its first major technical center outside of its headquarters in Minneapolis, USA. The investment signals a strong commitment to drive innovation in one of the company’s biggest growth markets.
The facility, which cost $15m, covers an area of 75,000 square feet. It will focus on developing products for Chinese consumers such as snacks, ready meals, yogurt and ice cream.
"Our new technical center in Shanghai provides General Mills a tremendous opportunity to accelerate innovation in the Greater China region and better support this rapidly expanding business," said Ken Powell, Chairman and CEO. "By bringing our world-class capabilities to the region, we will increase our agility to act on emerging consumer trends, enable bigger and better innovation pipelines, and establish a food safety center of excellence for our business."
"Our continued success in China will require consistently meeting the needs and demands of our consumers," said Gary Chu, senior vice president and president of General Mills China. "Over the last two decades, we have built a growing portfolio of brands and products that Chinese consumers have come to love and trust.
With the tremendous economic growth in China, establishing greater technical capabilities in this market is critical for our continued success."
China is one of the company’s biggest growth markets with brands such as Haagen-Daz ice cream, as well as Bugles and Trix snacks. The company said it expects double-digit growth from Greater China this fiscal year. The company also recently announced plans to expand its reach of Haagen-Daz stores with 80 new shops across China, entering 16 new cities. General Mills is also planning to enter the country’s $8bn yogurt category.
Fully one-third of General Mills sales are now outside the U.S. As a result of recent acquisitions, including Yoplait and Yoki, more than $6 billion including the company's proportionate share of joint ventures are now outside the U.S. in fast-growing, attractive categories: ready-to-eat cereal, yogurt, snacks, convenience meals, and super-premium ice cream.
Outside of the US, General Mills is focused on the middle class consumer in emerging markets to drive faster topline growth. The emerging global middle class is expected to reach 50 percent of the world's population by 2030. Across China, Indonesia, India and Brazil, the sheer number of new middle class households is projected to grow by almost 200 million people between 2010 and 2020.
"These consumers are increasingly pressed for time," said Chris O'Leary, executive vice president and chief operating officer, International. "As a result, this emerging middle class is looking for convenient food solutions, with strong health credentials and great taste. All of which points to a huge growth opportunity for our business going forward."
