General Mills Inc. is reaching deeper into the food manufacturing business to help match its supply chain to heightened demand. With its own factories already operating at capacity, the company is turning to more third-party manufacturers, the WSJ’s Mark Maurer reports, a sign of the continuing struggle by packaged-food companies to keep grocery shelves stocked as consumers load up during the coronavirus pandemic. General Mills will boost the number of suppliers by as much as 20% on top of the 200 it had before the pandemic, and expects these third parties to supply products until at least next summer. The outsourcing will be costly but the company says it’s needed for an expected “longer period of sustained higher demand.” The move also complicates General Mills’ supply chain, requiring transport connections for delivery of ingredients, as well as vetting of new suppliers and assessments of their capacity and limitations.

– Bob