General Mills' President Powell Replaces CEO Sanger

In a surprise announcement Monday, General Mills said its board of directors has elected Kendall J. Powell as its new CEO. Powell is currently General Mills' President and COO. He replaces Steve Sanger, who will stay on as Chairman through the end of the current fiscal year in May 2008. Though it is considered unlikely Mr. Powell will significantly alter the growth plans he has helped develop alongside Mr. Sanger, he plans to increase advertising spending by as much as 9% during the current fiscal year, while increasing funds for the development of healthier snacks and cereals. Powell also plans to make more of an effort to target the Black and Latino populations in the U.S. Mr. Sanger offered his confidence his successor would fill his shoes well, saying Mr. Powell was "uniquely qualified to lead General Mills in the next phase of our long-term growth.” General Mills shares are up just 0.5% YTD.

Sources: Press Release, Bloomberg, Wall Street Journal, TheStreet.com, Financial Times
Commentary: General Mills Beats by a Penny; FY Guidance Still Soft • 100 Stocks to Offset Rising Food Prices • General Mills Q4 EPS Misses By a Penny, Sales Top Estimates
Stocks/ETFs to watch: GIS. Competitors: DA, K, KFT. ETFs: PBJ, PWC, IYK
Earnings call transcript: General Mills, Inc. F1Q08 (Qtr End 8/26/07)

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