General Mills Effortlessly Combats Unrelenting Input Cost Inflation and Continues Capacity Rebuild

General Mills has earned a narrow moat for its preferred status with retailers, strong brand equities, and cost edge. The firm is the U.S. market leader in cereal, dessert mixes, refrigerated dough, snack bars, and natural pet food and is number two in soup. It has historically gained or maintained share in its global platforms, even as its brands command price premiums. These strong brands have resulted in solid relationships with retail partners that are complemented by a scale-based cost advantage; in our view, this pricing power will allow the firm to weather inflationary headwinds.