General Mills to Reorganize Business Into 3 Segments Starting January 2027
Key Facts
General Mills announced on November 10 that it will reorganize its business into 3 segments effective January 1, 2027, a move the company said would accelerate decision-making and improve resource allocation. The new structure will combine cereal, snacks and international markets in one segment, meals and baking solutions in a second, while pet remains separate. The changes coincide with Dana McNabb becoming chief executive on the same date. McNabb said the structure "better aligns our leadership and resources with our highest priorities." She added that the company aims to deliver more consistent and profitable growth through the changes.
The cereal, snacks and international segment will combine the Big G cereal and Canada and U.S. snacks units, both part of the North America Retail segment, with the current international segment. The meals and baking solutions segment will bring together the current U.S. unit of that name and the North America Foodservice segment. Pet will remain unchanged, according to the company’s announcement. General Mills said the reorganization is part of a broader organizational transformation initiative aimed at simplifying decision-making and focusing resources on priorities. The changes redraw the units on which the company will report its financial results.
Under the announced appointments, Ricardo Fernandez will lead the cereal, snacks and international segment, with broader responsibilities than in his current role as president of the international segment. Brett White will be promoted to lead the meals and baking solutions segment, while Liz Mascolo will continue to lead the pet business. Josh Yates will also be promoted to chief commercial officer, leading U.S. retail sales and company-wide commercial capabilities. His responsibilities include strategic revenue management, e-commerce, sales and marketing. The new commercial role brings together marketing, sales, consumer insights and analytics to strengthen the company’s omnichannel capabilities.
McNabb said the new structure connects leadership and resources to the company’s highest priorities and aims to make growth more consistent and profitable. Her appointment is part of a leadership transition that begins on January 1, 2027; she was unanimously elected to succeed Jeff Harmening, who will become executive chairman of the board. She has spent 27 years at General Mills, holding roles in general management, corporate strategy, marketing and international business. McNabb has identified restoring profitable growth as a priority for her leadership, citing digital demand generation and supply chain modernization among her priorities. The company’s net sales were $18 billion in fiscal 2026.
The reorganization comes as first-quarter fiscal 2027 results showed declines in some financial measures. Net sales were $4.4 billion, down 3%, affected by the sale of its U.S. yogurt business, while organic sales were unchanged from the year-earlier period. Adjusted operating profit fell 11% on a constant-currency basis, and adjusted diluted earnings per share declined 13% on the same basis. The company maintained its fiscal 2027 outlook for organic sales growth in a range from a decline of 1.5% to an increase of 0.5%, and adjusted diluted earnings per share of $3.00 to $3.20. In fiscal 2026, net sales fell 5% to $18.4 billion, and organic sales declined 2%.
The company plans to achieve at least $750 million in savings in fiscal 2027 through its global margin management and transformation program and other cost-cutting measures. Harmening had said the company was targeting cumulative savings of $3 billion by fiscal 2030, including $750 million in fiscal 2027. Adjusted operating profit also fell 16% on a constant-currency basis to $2.8 billion in fiscal 2026, while adjusted diluted earnings per share dropped 16% to $3.55. Harmening said the company is focused in fiscal 2027 on improving sales growth through increased innovation and product renovation, while raising efficiency to address inflation and fund growth investments. The company is placing the organizational transformation within its efforts to improve performance and provide resources for growth.
For financial reporting, General Mills plans to announce second-quarter fiscal 2027 results in December 2026 under the current segment structure. It expects to report third-quarter results in March 2027 under the new structure. The company will publish recast historical results before its third-quarter report, allowing performance to be viewed on the basis of the new segments. In the market, shares of the company, listed under the ticker GIS, closed at $34.88 on November 9, 2026. The shift in reporting between the two structures is the next milestone for investors tracking the effect of the reclassification on how results are presented.