General Mills’ CEO says M&A not a priority in challenging environment

General Mills’ CEO says M&A not a priority in challenging environment

Christopher Doering

Thu, September 10, 2026 at 1:00 PM GMT+3 2 min read

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Dive Brief:

• General Mills CEO Jeff Harmening said future acquisitions could take a backseat as the food maker is "prioritizing" paying down debt.

• Harmening said during a Barclays consumer staples conference this week that while the Cheerios and Nature Valley manufacturer is still considering acquisitions, "there's a very high bar in this environment."

• Food makers continue to struggle with a drop in volume as consumers pull back on spending and shoppers move away from highly processed offerings in favor of healthier, fresher items.

Dive Insight:

With bulking up through M&A less of a priority at General Mills, the Minnesota-based food company said it may continue its recent push to slim down by divesting some brands or exiting regions where it is active.

General Mills recently sold its Brazil business. And two years ago, the firm announced it would offload its American yogurt business, including brands such as Yoplait and Go-Gurt, to focus on faster-growing areas, including snacks and pet food.

"We'll still consider divestitures as well," Harmening told analysts at a conference this week in Boston. "But they have to be divestitures in which we think we can create significant shareholder value. There's not going to be a fire sale going on when it comes to divestiture at General Mills."

The company reported $18.4 billion in net sales in its 2026 fiscal year, with organic net sales dipping 2%. General Mills reiterated earlier this week that organic net sales in 2027 are expected to be between down 1.5% and up 0.5%.

General Mills aims to cut $3 billion in costs over the next four years as part of an aggressive plan to shore up its business and return to profitable growth. Roughly two-thirds of those savings will come from a more targeted focus on products and trends that most resonate with consumers.

"After strengthening our foundation last year, our goal in fiscal 2027 is to accelerate our momentum by helping our brands stand out even more with consumers," Harmening said in a statement. "We're encouraged by the early signs we're seeing in market, including improving retail sales trends and positive consumer response to our innovation efforts."

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