Increased sales of the natural and organic products segment are forecast for 2021 + 6.6% to $ 271 billion and expected to exceed $ 300 billion by 2023, Outperforming Total Food and Beverage Growth, According to New Hope.
Speaking to FoodNavigator-USA, Priscilla Zee, director of General Mills’ organic and natural products portfolio business unit that oversees brands such as Annie’s, Cascadian Farms and Muir Glen, noted how sales are even higher when analyzed. the pre-pandemic levels.
“Natural and organic food and beverages continue to outperform total food and beverage growth. If you look at the CAGR of the last two years, natural and organic food and beverages have grown 9.3% compared to total food and drink. drinks by 7.5% “.Zee told FoodNavigator-USA.
“I am amazed that 92% of homes contain natural and organic products. We have seen a significant number of consumers enter our Annie and Cascadian Farms brands in the last 18 months.”
‘Annie is one of the places where we saw explosive growth’
The influx of new consumers has been most notable for Annie, who now covers 20 grocery store categories.
“Annie is one of the places where we saw explosive growth. With the kids at home, the parents needing quick and easy meals for their kids, Annie does that so well. It’s a meal that gets kids and moms excited too. they can feel good. “Zee pointed out.
“Annie’s is one of the brands where we have the highest rate of Latinx consumers. With one in four babies born Latinx, I think this will continue to grow.”
However, to continue increasing its penetration into homes with new consumers, the company will face the challenge of offering taste, convenience and affordable prices, especially as many manufacturers struggle with inflation.
“Consumers are buying both natural and organic items and conventional items. Our challenge is how can we continue to offer flavor and then how can we ensure that we are meeting affordability in general.” Zee said.
“I think we are definitely going to have to pay attention to taste, preparation and convenience. So ease will remain a focus for us, without question.” Zee noted, adding that her individual Annie micro-cups have been leading the growth of her mac and cheese business.
Zee added that the brand is in the process of converting its micro-cups from plastic to 100% recyclable paper and has already started rolling out more sustainable packaging for some retailers.
“We listen to consumers who want more products that meet sustainability.”
‘I’ve seen us move faster and innovate faster than ever’
Another component of its strategy to grow its audience of natural and organic customers is maintaining a laser focus on the changing needs of consumers, according to Zee, who has been with General Mills for 15 years.
“Over the years that I have been a part of General Mills, I have seen us move and innovate faster than ever.”She said.
This approach has led to successful new product innovation, such as its Autumn’s Gold grain-free granola line launched in association with Costco.
“There were a lot of consumers who moved away from the granola and cereal category because they didn’t want to eat grains. We heard from consumers who said there are a lot of grain-free granola on the market, but they don’t have that same crunch they miss from granola that they used to. to eat “,Zee said.
Learning from this consumer perception, General Mills launched Autumn’s Gold grain-free granola and bars made with a variety of nuts to provide the crunch that consumers were missing.
Since then, the product has become a top-selling item at Costco, according to Zee, who said agile product innovation will continue to be a focus for the future of General Mills’ natural and organic business.
“Where I see the greatest opportunity for natural and organic is to ensure that we reach all types of consumers and not just a subset of consumers.”She said.
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