General Mills, Inc. (NYSE:GIS) Q1 2020 Earnings Conference Call - Final Transcript

Sep 18, 2019 • 08:30 am ET

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General Mills, Inc. (NYSE:GIS) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Steve Strycula

building and data analytics. Is that going to be more SG&A? Or is that still, for accounting purpose, roll through COGS? And then a strategic question is, the inventory drawdown that we're seeing in the U.S. is that at all tied to the evolution of click and collect, meaning how retailers are merchandising in their stores and inventorying them or just carrying fewer days on hand because of how click and collect impacts the business. Could you comment there. Thank you.

Executive
Jeffrey L. Harmening

Yes. So on the brand-building side, I would say without getting into specific on where it goes on the line of the

P&L, what we're talking about on brand building is not increase -- is not increased price promotion, it really is brand building and whether we do that through our customers or whether we do that through some sort of a mass media as Jon Nudi highlighted, I think our North America Retail Marketing is really good right now, especially in Cereal, but even for some of our other businesses and on Pet. And so to the extent that we see an opportunity to improve our brand building behind things like Pet or Old El Paso or Cereal we'll continue to do that because we're seeing some pretty good returns and we like what we're doing. So I'm not going to get go line-by-line, but that's what we see. The -- and then your second question --

Analyst
Steve Strycula

Inventory.

Executive
Jeffrey L. Harmening

On inventory. You want to talk about that?

Executive
Jonathon J. Nudi

Yeah, sure. So Steve, I'd say the inventory reduction is probably less tied to click and collect, but related to data analytics and just technology. I think our retailers have better tools now, it's really I understand how much the inventory, they need to have in the warehouse, as well as on the shelf, and they're leveraging that technology to bring down their inventories and still have good in-stock position. So again, I think it's technology and data analytics, not necessarily click-and-collect..

Analyst
Steve Strycula

All right. Thank you.

Executive
Jeffrey L. Harmening

Okay. I think that gets us to full time. Thanks everyone for your engagement and will be available throughout the rest of the day for any follow-ups. Have a great day. Thank you.

Operator
Operator

[Operator Closing Remarks]