US food giant General Mills has recently confirmed the discontinuation of its G-Works innovation platform.
Additionally, the company has announced that no further investments will be made through its 301 Inc. venture-capital arm “for the foreseeable future.”
Unconfirmed reports in US media indicate that this decision to discontinue G-Works could potentially affect 40 employees at the Minneapolis, Minnesota headquarters, suggesting a cost-cutting initiative.
In a brief statement, General Mills’ spokesperson Chelcy Walker emphasized: “Innovation is central to our Accelerate strategy.”
Walker further elaborated, “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.”
It’s noteworthy that Carbe Diem, a low-carb pasta brand, was launched through G-Works in March 2024.
While further details regarding the Strategic Growth Office have yet to be disclosed, it has been established that G-Works has served as a significant pipeline for new product development since its launch in 2019. The status of the 301 Inc. VC arm changed in late 2023, as General Mills announced a venturing shake-up involving the introduction of a new “growth equity fund” aimed at “acquiring, scaling, and incubating businesses.”
All three investment and innovation divisions were to operate under a newly formed entity called Gold Medal Ventures.
The inaugural acquisition made by this new growth equity fund was Fera Pets, a company specializing in supplements for pets.
At that time, General Mills, which owns brands like Old El Paso, stated that while 301 Inc. would continue pursuing minority investments, it would also serve to source opportunities for the new growth equity fund.
Previous G-Works launches have included the low-sugar snack brand Good Measure and the now-discontinued lactose-free dairy product Bold Cultr. Meanwhile, the 301 Inc. investment portfolio comprises businesses such as PetPlate, a dog meal-delivery service, pollination tracking firm Bee Hero, and plant-based startup Everything Legendary.
In December, General Mills adjusted its projected operating profit for fiscal year 2025, as detailed in a report about an “uncertain macroeconomic backdrop for consumers” across key markets.
As part of this challenging environment, the company announced it would implement cost cuts while also increasing “targeted promotional investments” in key “priority categories” to deliver “greater value for consumers.” Furthermore, General Mills plans to enhance its brand-building efforts beyond the levels established in fiscal 2024.
General Mills’ chairman and CEO Jeff Harmening stated: “While these investments lower our profit outlook for fiscal 2025, they better position General Mills for sustainable growth in fiscal 2026 and beyond.”
The manufacturer of Cheerios cereal and Betty Crocker cake mixes, which also owns pet food brands including Blue Buffalo, is set to announce its quarterly earnings later this month.
According to the company, its Accelerate strategy focuses on enhancing its brand portfolio, boosting innovation, building digital infrastructure, and strengthening its commitment to both people and the planet.
