General Mills, the renowned cereal and pet food maker, has recently announced significant changes in its investment strategy. The company revealed that it is closing G-Works, its in-house innovation unit, and pausing additional outside investments by its venture capital arm 301 Inc. This move comes as part of General Mills’ efforts to adjust how it pursues new growth initiatives.
Chelcy Walker, a spokesperson for General Mills, stated that the company is rolling out a new Strategic Growth Office, leading to the closure of G-Works and the temporary halt of new investments by 301 Inc. The decision to restructure its investment strategy is a response to the current economic landscape, where consumers are cutting back on spending due to inflation and economic uncertainty.
G-Works, which is being shut down, has a portfolio that includes innovative products such as low-carb pasta Carbe Diem, low-sugar food maker Good Measure, and Doolies, a snack brand tailored for digestion. On the other hand, 301 Inc. has previously invested in companies like precision pollination startup BeeHero, plant-based burger company Everything Legendary, and PetPlate, a meal delivery service for dogs. Despite the changes, Walker assured that the current portfolio of 301 Inc. will remain unaffected.
General Mills’ CEO, Jeff Harmening, highlighted the company’s commitment to innovation during a recent conference. He mentioned that net sales from new product innovation have increased by nearly 20% this year. Harmening expressed optimism about the company’s innovation pipeline, anticipating significant growth contributions in fiscal 2026.
Last summer, General Mills appointed Asheesh Saksena as its chief strategy and growth officer. Harmening praised Saksena’s track record of driving growth across various industries, citing his experience at companies like Gap and Best Buy. The addition of Saksena to the leadership team reflects General Mills’ focus on driving innovation and growth in the coming years.
