General Mills is reporting it hiked media spending by 17% for the 2023 fiscal year, and promises to continue to invest in products, innovation and marketing to keep its brands relevant.

The company’s Q4 operating profit slumped 19% to $818 million USD, while full-year operating profit was $3.4 billion USD, down 1%.

However, the company claims that, despite retailer inventory headwinds, it delivered “strong and broad-based net sales growth” with full-year increases in snacking, meals and non-cereal morning foods. In addition, sales in the Canadian market were up 8% on a constant-currency basis.

Fourth-quarter net sales for General Mills’ North American retail segment increased 2% to $3.1 billion USD.

General Mills CEO Jeff Harmening said in prepared remarks that its increased media spending was also 35% higher than its pre-pandemic levels in an effort to drive more consumer engagement in digital channels.

In this morning’s earnings Q&A, he says the company is confident in the year ahead and will continue to invest for growth.

“In fiscal ’24, we’ll support strong campaigns across our biggest brands that highlight the great taste, convenience, nutrition, and importantly, value of our products,” Harmening said, adding in a call with investors that the company will “let its marketers, market.”

He cited the company’s investment in its Pillsbury brand’s “Fill. Roll. Bake.” campaign, which he says continues to inspire easy everyday dinner solutions for consumers.

“We have been agile,” he says, and that the company’s category growth is no accident, but a result of “good marketing.” General Mills is reporting market share gains in cereal, refrigerated dough, fruit snacks, hot snacks, soup, and seasonings.

Fourth-quarter net sales for the pet segment increased 7%, coming following a double-digit media spend hike in the fiscal year.

Harmening says the pet business had a rough start to the year, thanks to lack of capacity, but grew double digits in the back half. Dry pet food is responding well to advertising, he says, while wet food is lagging.

With the supply chain stabilizing, General Mills says retailers are also more receptive to its product innovations.

In North American Retail, General Mills is adding adding Lucky Charms and Cocoa Puffs to its successful “Minis” cereal platform, launched in November in what the company says is its smallest pack size innovation to date. The company also promises a new savory line of Nature Valley crunchy bars.