1. Evolving Consumer Trends What It Means for the Food and Agriculture Value Chain

2. Agenda General Mills Overview The External Environment
What Consumers are Telling Us
Working Together to Meet Consumer Needs
Discussion
Agenda

3. General Mills at a Glance
One of the world’s largest food companies
Products marketed in more than countries on six continents
42,000 employees
Approx. $19 billion in fiscal 2015 net sales
As a result, General Mills is today one of the world’s biggest food companies, based in suburban Minneapolis, Minnesota – in the United States. We market products in more than 100 countries on six continents around the world – and have more than 40,000 employees, more than half of whom are outside the United States.
In fiscal 2015, we sold more than $17.6 billion USD in net sales – not including our proportionate share of our global joint ventures.

4. Our Brands Our brands are our cornerstone.
They include global brands, such as Haagen-Dazs and Yoplait, and regional brands such as Latina in Australia, Jus-Rol in the U.K., and Diablitos in Venezuela.

5. The external environment is rapidly evolving.

6. External Environment
“There is just no acceptable level of any chemical to ingest, ever.”
- Vani Hari, The Food Babe
“We are going to force them to label this food. If we have it labeled, then we can organize people not to buy it.”
- Andrew Kimbrell, Center for Food Safety (on their campaign to mandate GMO labeling)
“The most important thing to realize is that you cannot wash glyphosate off of food since it is incorporated into each cell of the plant.”
- Dr. Jill Carnahan, Holistic and Alterative Medicine Physician, Author

7. What consumers are telling us.

8. Consumers are highly engaged

9. The Evolving Consumer Landscape
Wellness trends are dominating the consumer conversation.
The Rise of “Real Food”
Natural Nutrition
“Free Froms”: Artificial Colors, Artificial Flavors, Non-GMO, No Antibiotics
Fresh, whole, minimally processed (“ingredients you can see and pronounce”)

10. The Evolving Consumer Landscape
The marketplace is responding rapidly.
Simplification of ingredient panels
Numerous production / sourcing claims
Packaging changes
Pre-2010

11. The Evolving Consumer Landscape
Distrust in traditional institutions – government, corporations, media, NGOs – has eroded significantly.
Consumers require more information
When, where, how, why?!
Source: Edelman Trust Barometer, 2015 Report

12. We must work together to meet consumer needs.

13. GMO Labeling
Compliance with the Vermont mandatory GMO-labeling law is set for July 2016.
A federal solution is urgently needed.

14. Farming Practices Matter to Consumers
Pesticides
Activists continue to challenge the safety of pesticides.
Animal Welfare
Consumers care about how animals are treated at the farm level.

15. Commitment to Sustainable Sourcing
10x20:
Sustainably sourced on 10 priority categories by 2020
Responsible Sourcing:
Our supply chain is in compliance with labor, environmental, health and safety, and anti-corruption laws
Water Stewardship:
Reduce our direct (plants) & indirect (raw materials) use of water
10 x 20 Sourcing Commitment
Wheat
Sugar
Dairy
2018 Farm Bill
Agriculture research
Conservation policies (land, water)
Food waste
Other Key Areas
Climate change/GHG emissions
Pollinator protection
Sourcing challenges

16. Consumers Will Continue to Drive Change
Consumers want to know…
What is your carbon footprint?
What is your policy on pesticides?
Where are you sourcing your ingredients?
What is the name of the farm? The farmer?
Are the farm workers compensated fairly?

17. Questions and Discussion