For reasons that make no sense to me at all, corporations are not allowed to simply make a profit. Their profits must constantly increase. They must report growth in profits to Wall Street every 90 days.
For food companies, this is not so easy. We already have twice as many calories available in the food supply as needed by our population – nearly 4,000 calories per capita per day. How to deal with this? Find new buyers.
General Mills says its “recipe for profitable growth” will target three specific groups: Hispanics, aging baby boomers (those aged 55 and over), and millennials (baby boomers’ kids aged 16-33). General Mills owns cereals and fruit roll-ups, among other such products.
According to MinnPost.com, General Mills is now the leading advertiser in U.S. Hispanic media.
But General Mills expects most of its growth to come from emerging markets like China. Sales in China tripled from 2005 to 2009 and are expect to reach $900 million by 2015. Sales of General Mills’ Häagen-Dazs* ice cream are booming in China.
Isn’t it fun to be a target of General Mills’ growth strategies? I assume all major food companies have their eyes on the same target.
*Factoid footnote: Nestlé owns Häagen-Dazs in the U.S. and Canada. General Mills owns the brand everywhere else, including in China.