General Mills to Invest $54 Million in Innovation Hub
General Mills, the maker of Cheerios, is planning to invest $54 million in an innovation plant near its Minnesota headquarters. The goal of this investment is to accelerate the development of new products and boost sales for the company.
The new 35,000-square-foot wing will be added to the James Ford Bell Technical Center, which serves as a key hub for General Mills’ innovation, technology, and quality capabilities. This addition will increase pilot plant space by over 20% and provide state-of-the-art facilities for research and development teams.
Food and beverage companies are increasingly investing in innovation as consumers become more discerning in their purchases and demand higher quality products.
General Mills stated that this investment reflects its commitment to developing products that align with consumer demands, such as spicier flavors and high protein options. The expansion will provide flexible spaces for research and innovation across the company’s business units, enabling them to meet evolving consumer preferences.
Lanette Shaffer Werner, Chief Innovation, Technology, and Quality Officer at General Mills, emphasized the importance of this expansion in staying ahead in innovation. She mentioned that the new wing at the James Ford Bell Technical Center will enhance flexibility in pilot plant operations and facilitate collaboration among teams to deliver consumer-centric products.
Despite challenges such as consumer spending cutbacks and tariffs, companies like General Mills have no choice but to innovate and create new products to remain competitive. General Mills has forecasted organic net sales to be flat for fiscal year 2026 and is committed to launching new products in key categories that align with current trends, such as protein in cereal and bold flavors in snacks.
This investment in the innovation facility comes after General Mills announced earlier this year its global transformation initiative, which could involve job cuts to increase productivity. The company also closed its in-house innovation unit and paused additional outside investments by its venture capital arm, signaling a shift in how they pursue new growth initiatives.
Overall, General Mills’ investment in innovation reflects its dedication to meeting consumer demands, staying competitive in the market, and driving growth in the food industry.
