General Mills expands organic foods business

AS DEMAND for organic and natural food products continues to grow in the US, General Mills has sets its sight on purchasing a local trusted brand. The company is closing a deal with California-based Annie’s Inc., a leading manufacturer in the convenient meals and snacks business, with a net sales of $204 million in the last fiscal year end March 2014. It has over 145 products selling in North America.

General Mills has its line of natural and organic products, including the Cascadian Farm, Muir Glen, LARABAR and Food Should Taste Good brands, with net sales amounting to about $330 million in the fiscal year ended May 2014. Its acquisition of Annie’s expands its position in the industry which is growing at a compound rate of 12% over the past 10 years, according to Jeff Harmening, executive vice president, General Mills in Minneapolis.

“Annie’s competes in a number of attractive food categories, with particular strength in convenient meals and snacks – two of General Mills' priority platforms.  Consumers know and trust Annie's purpose-driven culture and authentic brand.  We believe that combining the Annie's product portfolio and go-to-market capabilities with General Mills' supply chain, sales and marketing resources will accelerate the growth of our organic and natural foods business," he said.