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Minimally processed foods driving granola sales
“Consumers today are showing interest in products they perceive as minimally processed. This is driving strong growth for the granola segment where sales are increasing at a 10% compound rate in the past four years. We are the segment leader and retail sales for our granola cereals, including Nature Valley and Cascadian Farm, America’s favorite granola have grown at a 27% compound rate over the same timeframe.’
More protein too
“Consumers are also looking for more protein options at breakfast. So over the past 18 months, we have introduced a variety of higher protein cereal options.”
Improving share in greek yogurt
“Our share of the Greek yogurt segment continues to rise, reaching 12% in the second quarter thanks to continued distribution gains and strong advertising highlighting the great taste of Yoplait Greek and Greek 100. We have also been able to drive two successive quarters of double-digit retail sales great growth on original Yoplait through product renovation and compelling snack focused advertising”
Annies helps give more scale in organic
“The addition of Annie’s this October puts our overall natural and organic portfolio at over $600 million in net sales. That is meaningful scale for both our suppliers and our customers. We are operating Annie’s separately with John Foraker running the business out of Berkeley headquarters and reporting directly to me. ”
Pursuing the organic customer has led to synergies in other parts of the business
“far from getting lost, what we have found is that not only have we been able to grow those businesses but also the understanding of the natural and organic consumer and what they are looking for has actually rubbed off on the rest of the people in the business. And so we think that there is an opportunity, not only to accelerate our growth for our natural and organic brands within these operating units, but also that the consumer understanding we generate there will have benefits for our other brands as well.”
We feel like we get the consumer, we just have to innovate to meet them
“we have a good understanding of where the consumer is and we feel like we have a really good understanding of where they are going. Whether it’s in better-for-you snacking or whether it’s in wellness or what they expect of the economic value for their products. And so, because we feel like we have a good idea, when we innovate well and we spend behind it, we like the results.”
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