I recently had the opportunity to learn about General Mill’s (the US food giant) “emerging brands elevator” program (also known as 301 Inc). Traditionally, General Mills has grown either through mergers and acquisitions, or by building new businesses from the ground up. Increasingly, however, it found that small brands were much faster at innovation, so it decided to switch its focus and create a “brand elevator”. The program consists of 2 core components:
- horizon scanning: to spot the most promising emerging brands;
- indispensable partner: to identify ways in which the company can add most value to small, nimble businesses. Often this has less to do with capital injection and more to do with making the expertise and clout of a big multinational available to a small player.