General Mills Cuts Segments From Four to Three as New CEO Arrives

General Mills will collapse its business from four operating segments into three on Jan. 1 — the same day incoming CEO Dana McNabb replaces Jeff Harmening at the top of the Cheerios and Blue Buffalo maker.

The reorganized company will run three segments: cereal, snacks and international; meals and baking solutions; and pet. The old structure split the business into North America retail, North America pet, North America foodservice and international. Foodservice, notably, no longer gets a segment of its own.

McNabb said the new model "better aligns our leadership and resources with our highest priorities" and positions the company to accelerate growth. She added that the format will turn consumer insight "into action more quickly," because "winning consumer choice today means responding faster to changing needs."

Who runs what now?

The restructuring arrives with a slate of executive appointments:

• Ricardo Fernandez takes an expanded role as president of cereal, snacks and international. He currently leads the international business.
• Brett White is promoted to president of meals and baking solutions from president of U.S. meals and baking solutions.
• Liz Mascolo continues as president of the pet business.
• Josh Yates moves up from chief customer officer to chief commercial officer, leading U.S. retail sales and enterprise commercial capabilities.

McNabb isn't an outsider redesigning the org chart from scratch. She joined General Mills in 1999, has held a series of roles at the Minnesota-based company and most recently served as COO. Harmening steps aside in January after the handover announced a little over a month ago.

What does this change for the business?

In practice, it consolidates power around fewer, broader portfolios — and it signals speed as the operating obsession. The timing is not accidental. General Mills, like other food makers, is grappling with slowing sales as consumers pull back on spending and drift toward healthier, less processed products. PepsiCo-era playbooks this is not, but the industry pattern is clear: last week, energy drink maker Celsius Holdings said it would form dedicated divisions for its three brands to improve its growth outlook.

The numbers explain the urgency. In its most recent quarter, ended Aug. 30, General Mills reported sales fell 3% to $4.4 billion, dragged down in part by the recent yogurt divestiture. Organic net sales were roughly flat year over year. Flat, in the current grocery environment, counts as holding steady rather than winning.

The bet, then, is that three fiefdoms move faster than four. McNabb gets one day as CEO before her new structure goes live — a pace that tells you plenty about how quickly she believes the company needs to change.