US food major General Mills has confirmed it is scrapping its G-Works innovation platform.
And no more investments will be made through its 301 Inc. venture-capital arm “for the foreseeable future”, either, General Mills said.
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US media reports, unconfirmed by General Mills, suggest discontinuing G-Works will impact 40 of the Minneapolis, Minnesota-based company’s employees. They also suggest the moves are a cost-cutting exercise.
In a brief statement sent to Just Food confirming the moves, General Mills’ spokesperson Chelcy Walker said: “Innovation is central to our Accelerate strategy.
“We’ve introduced a new Strategic Growth Office and are adjusting how we pursue new growth initiatives. As part of these changes, we are discontinuing our G-Works programme and we are pausing additional investments through 301 Inc. for the foreseeable future. This does not impact Carbe Diem or our current 301 Inc. portfolio.”
Carbe Diem is a low-carb pasta brand launched via G-Works in March 2024.
Further details relating to plans for the Strategic Growth Office have not been forthcoming.
G-Works has been a pipeline of new products for General Mills since launching in 2019, while the status of its VC arm 301 Inc. changed in late 2023 when the company announced a venturing shake-up through the launch of a new “growth equity fund” with a focus on “acquiring, scaling and incubating businesses”.
All three investment and innovation arms were to be housed under a division called Gold Medal Ventures.
The company’s new growth equity fund immediately made its first acquisition, buying Fera Pets, which develops and sells supplements for dogs and cats.
Old El Paso brand owner General Mills’ said at the time that 301 Inc. would continue to make minority investments “but it will also function to source deals for the new growth equity fund”.
Other G-Works launches have included low-sugar snack brand Good Measure and the now discontinued lactose-free dairy product Bold Cultr, while 301 Inc. investments have included PetPlate, a meal-delivery service for dogs, pollination tracking firm Bee Hero, and meat-free start-up Everything Legendary.
In December, General Mills revised its adjusted operating profit forecast for fiscal year 2025 amid an “uncertain macro-economic backdrop for consumers” across key markets.
The company said it was implementing cuts while increasing “targeted promotional investment” in key “priority categories” to provide “greater value for consumers”, alongside boosting brand-building efforts beyond fiscal 2024 levels.
General Mills chairman and CEO Jeff Harmening said at the time: “While these investments lower our profit outlook for fiscal 2025, they better position General Mills for sustainable growth in fiscal 2026 and beyond.”
The Cheerios cereal and Betty Crocker cake mixes manufacturer, which also owns pet-food brands such as Blue Buffalo, is due to announce its quarterly earnings later this month.
General Mills’ Accelerate strategy is said by the company to be centred around strengthening its brand portfolio, increasing innovation, building digital infrastructure and enhancing its commitment to people and the planet.
