General Mills, the multinational manufacturer and marketer of branded consumer foods, has launched what it describes as ‘soup drops’ as a new tactic to re-energize its flagging Progresso brand.
The novel product is essentially dehydrated portions of soup, packaged in a format similar to a tea bag. Customers merely need to add hot water and wait around eight minutes to enjoy a warm bowl of soup. General Mills hopes this convenient option will entice new and returning consumers to its Progresso brand, which has been experiencing a decline.
The innovative soup drops arrive in a climate of waning soup sales nationwide. According to Euromonitor data, total annual soup sales in the United States fell by 0.3% in 2020. The report also showed a 1.1% decrease in soup sales over the past five years.
Furthermore, General Mills specifically has been grappling with decreased sales, particularly with its Progresso brand. In the company’s fiscal third quarter ending February 28, sales of Progresso products plunged 14% year-over-year, as reported in a recent company earning’s call.
However, this new ‘soup drop’ concept might just be the much-needed breath of fresh air to revive the iconic brand. With people increasingly seeking convenient, quick meal solutions, the soup drops align with customer demands.
The global pandemic also played a role in this product invention. Amid the lockdowns, many consumers rediscovered their home kitchens and started cooking more than ever before. Yet, as things resume normality, General Mills anticipates that many consumers might lack the time or energy to prepare meals from scratch. This is where the soup drops, believed to be a convenient and comforting solution, might fill a gap in the market.
Apart from the soup drops, General Mills is also exploring other avenues to kickstart Progresso, which may include new product launches, advertising campaigns, and targeted promotions. It is clear the multinational conglomerate is determined to get Progresso back on track and regain market share in the soup sector.
Despite the challenges, General Mills remains optimistic about its prospects, bolstered by innovative products as it navigates the rapidly changing consumer landscape.
Last modified: January 23, 2025
