General Mills, a name synonymous with breakfast cereals and pantry staples, has a rich history intertwined with the entrepreneurial spirit of the late 19th and early 20th centuries. Many assume that families who founded such iconic brands continue to hold the reins. However, the reality of corporate ownership is often more complex. So, does the Post family still own General Mills? The short answer is no. But understanding how we arrived at that answer requires a deep dive into the histories of both General Mills and the Post family, and an exploration of the evolution of corporate structures over time.
The Origins of General Mills: A Merger of Milling Giants
The story of General Mills begins not with a single family, but with a collection of milling companies that eventually merged to form the food conglomerate we know today. Unlike some food companies built around a single founder’s vision, General Mills arose from an amalgamation of established businesses.
Pioneering Millers: In the mid-19th century, numerous millers across the Midwest were revolutionizing the flour production process. These independent millers were the foundation upon which General Mills was built. Names like Washburn, Crosby, and Pillsbury, were prominent figures in this early era.
James Ford Bell and the Merger: In 1928, James Ford Bell, then president of Washburn Crosby Company, spearheaded the merger of Washburn Crosby with several other milling companies. This consolidation created General Mills, Inc., a company with a significantly larger scale and scope than any of its predecessors. This move was a strategic response to the changing economic landscape and the growing demand for branded food products.
The Early Product Line: From the outset, General Mills had a diverse product portfolio. While flour remained a central product, the company quickly diversified into cereals, baking mixes, and other food items. This product diversification proved crucial to the company’s long-term success.
The Post Family and Post Consumer Brands: A Separate Legacy
While the Post family isn’t directly connected to General Mills ownership, their role in the breakfast cereal industry is undeniably significant. Their legacy is primarily associated with Post Consumer Brands, a separate entity.
C.W. Post and the Birth of Postum: Charles William Post, the founder of the Postum Cereal Company, was a key innovator in the early days of the breakfast cereal industry. He developed Postum, a grain-based beverage meant to be a coffee substitute, and Grape-Nuts cereal, which quickly became household names. C.W. Post was a marketing genius, employing innovative advertising techniques to build his brand.
Postum Cereal Company’s Evolution: After C.W. Post’s death in 1914, his company continued to grow and expand its product line. Over the years, the Postum Cereal Company underwent several transformations, eventually becoming General Foods Corporation.
The General Foods Era: General Foods became a major player in the packaged food industry, encompassing a wide range of brands, including Jell-O, Maxwell House coffee, and Birds Eye frozen foods, in addition to the Post cereal line.
Kraft Foods and Beyond: In 1985, Philip Morris Companies acquired General Foods. Philip Morris later spun off its food businesses, which ultimately became Kraft Foods. The Post cereal brands were part of this evolution.
Post Consumer Brands Today: Today, the Post cereal brands are owned by Post Holdings, a separate company from Kraft Heinz. Post Holdings focuses primarily on cereal and snacking products.
Ownership Structures: From Families to Shareholders
Understanding why the Post family doesn’t own General Mills requires a grasp of how corporate ownership structures have changed over time. The shift from family-owned businesses to publicly traded corporations is a critical part of this story.
The Rise of Public Corporations: In the early days of industry, many companies were family-owned and operated. However, as businesses grew and required more capital, they often turned to public markets to raise funds. This meant selling shares of the company to investors, diluting family ownership.
Shareholders and Corporate Governance: Public corporations are owned by their shareholders, who elect a board of directors to oversee the company’s management. This structure separates ownership from day-to-day operations.
Institutional Investors: Today, much of the stock in large corporations like General Mills is held by institutional investors, such as pension funds, mutual funds, and hedge funds. These investors have a fiduciary duty to act in the best interests of their clients, influencing corporate decisions through their voting power and engagement with management.
The Diffusion of Ownership: The shift to public ownership has resulted in a diffusion of ownership in most major corporations. No single family typically controls a significant portion of the stock.
General Mills Today: A Publicly Traded Conglomerate
General Mills is a publicly traded company, meaning its shares are available for purchase on the stock market. Its ownership is distributed among a vast number of shareholders, including individuals and institutional investors.
Key Shareholders: While no single family controls General Mills, certain institutional investors hold significant blocks of shares. These large shareholders include mutual fund companies like Vanguard and BlackRock, and pension funds.
Management and the Board of Directors: General Mills is managed by a team of executives led by the CEO, who reports to the board of directors. The board is responsible for overseeing the company’s strategy and performance.
The Absence of Family Control: The Post family, having divested from the companies that eventually became part of the Kraft Heinz empire, has no direct ownership stake in General Mills.
The Evolution of Brands and Corporate Landscapes
The journeys of General Mills and Post Consumer Brands illustrate the complex and often unpredictable nature of the corporate world. Mergers, acquisitions, and spin-offs have reshaped the landscape, altering ownership structures and brand affiliations.
Strategic Acquisitions and Divestitures: Throughout their histories, both General Mills and the companies that became Post Consumer Brands have engaged in numerous acquisitions and divestitures. These strategic moves have allowed them to focus on core businesses and adapt to changing market conditions.
The Power of Branding: Despite the changes in ownership, the power of strong brands like Cheerios, Wheaties, and Grape-Nuts has endured. These brands represent a legacy of quality and innovation.
Adapting to Consumer Trends: Both General Mills and Post Consumer Brands face the ongoing challenge of adapting to changing consumer preferences. This requires innovation in product development, marketing, and distribution.
Key Takeaways: Ownership and Legacy
While the Post family played a pivotal role in shaping the breakfast cereal industry with brands now under Post Consumer Brands, they do not own General Mills. General Mills, a product of strategic mergers and acquisitions, operates as a publicly traded company with a diverse shareholder base. The story underlines the evolution of business, from family-run enterprises to large corporations with diffused ownership. The legacy of both companies lives on through their iconic brands and the ongoing pursuit of innovation in the food industry. The separation of the Post family from General Mills’ ownership highlights the dynamic nature of corporate structures and the ever-changing landscape of the food industry.
Did the Post family ever own General Mills?
No, the Post family did not directly own General Mills. C.W. Post, the founder of Post Cereals, established a company that eventually became part of General Foods Corporation. General Foods was a major competitor of General Mills for many years, but it was never owned or controlled by the Post family after C.W. Post’s death. Post’s company carved out its own space in the breakfast cereal market alongside General Mills’ offerings, creating a competitive landscape that benefited consumers.
While the Post family created and initially managed the successful Post cereals business, it’s crucial to understand the separate lineage of General Mills. General Mills was formed in 1928 from a merger of several milling companies, primarily Washburn Crosby Company, famous for Gold Medal flour. This origin is distinct from the development of the Post cereal empire, illustrating that although both families made an undeniable mark on the American food landscape, their business paths remained separate.
What is the relationship between Post Cereals and General Mills today?
Post Cereals, now known as Post Consumer Brands, is a completely separate company from General Mills. After numerous mergers and acquisitions, Post Consumer Brands is currently owned by TreeHouse Foods. This means that the two companies, while historically rivals in the breakfast cereal market, operate independently with different ownership and strategic directions.
General Mills remains a major player in the food industry, owning brands such as Cheerios, Wheaties, and Pillsbury. Post Consumer Brands focuses on its own portfolio of cereals like Grape-Nuts, Honey Bunches of Oats, and Pebbles. The separation highlights the evolution of the food industry, with former competitors navigating different paths to market dominance.
Who currently owns General Mills?
General Mills is a publicly traded company, meaning it is owned by its shareholders. Institutional investors, mutual funds, and individual investors hold shares of the company. There is no single family or individual that controls a majority stake in General Mills.
The company is managed by a board of directors and a leadership team that are responsible for making strategic decisions and overseeing the day-to-day operations. This structure ensures that ownership is distributed and that the company operates in the best interests of its shareholders as a whole.
What was C.W. Post’s role in the cereal industry?
C.W. Post was a pioneer in the packaged cereal industry. He founded Postum Cereal Company in the late 19th century, which introduced popular cereals such as Post Toasties, Grape-Nuts, and Postum, a coffee substitute. His innovative marketing techniques and focus on convenience foods helped to revolutionize the American breakfast.
Post’s success significantly impacted the breakfast habits of Americans, shifting them away from traditional cooked meals towards ready-to-eat cereals. His business acumen and marketing prowess established Post as a major competitor in the emerging cereal market, paving the way for the industry as we know it today.
Did the Post family sell their company?
Yes, the Post family eventually sold the Postum Cereal Company. After C.W. Post’s death, his daughter Marjorie Merriweather Post took over the company and transformed it into General Foods Corporation through strategic acquisitions. General Foods was subsequently acquired by Philip Morris Companies (now Altria Group) in 1985.
This acquisition marked the end of direct Post family ownership of the company founded by C.W. Post. The company’s journey from Postum Cereal Company to General Foods to being part of a larger conglomerate illustrates the dynamics of corporate mergers and acquisitions over time.
How did General Mills get started?
General Mills was formed in 1928 through a merger of several milling companies. The Washburn Crosby Company, known for its Gold Medal flour, was the primary entity in this merger. Other milling companies, such as Sperry Flour Company, also contributed to the formation of General Mills.
This consolidation aimed to create a more efficient and competitive food company. The newly formed General Mills quickly expanded its product line beyond flour to include a variety of packaged foods, including breakfast cereals, cake mixes, and other convenience items.
What are some of the most famous brands owned by General Mills?
General Mills owns a wide array of well-known and beloved brands. In the cereal aisle, they are famous for Cheerios, Wheaties, Lucky Charms, and Cinnamon Toast Crunch. These iconic cereals have been staples in American households for generations.
Beyond cereals, General Mills also owns brands such as Pillsbury, Betty Crocker, Yoplait, Häagen-Dazs (in North America), and Old El Paso. This diversified portfolio demonstrates General Mills’ significant presence in various segments of the food industry.