General Mills To Drop North America Yogurt Business
General Mills is selling off its North America yogurt business. Lactalis has acquired the U.S. business and Sodiaal the Canadian segment in a $2.1 billion transaction.
Divested brands include Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and Ratio. The business contributed an estimated $1.5 to General Mills’ fiscal 2024 net sales.
The transaction also includes manufacturing facilities in Murfreesboro, TN; Reed City, MI; and Saint-Hyacinthe, Québec.
“Today’s announcement represents another significant step forward for General Mills in advancing our accelerate strategy and our portfolio reshaping ambitions,” said General Mills CEO Jeff Harmening in a statement.
Also read: General Mills Hires New Chief Strategy & Growth Officer
“By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins, we will be in a better position to drive top-tier shareholder returns over the long term,” he added.
CPG M&As
General Mill’s most recent sell-off is part of a larger strategy to reprioritize its portfolio to focus on premium pet food and organic snacks. Harmening recently said the company is really focusing on small bolt-on acquisitions, however, rather than large transactions. The yogurt drop follows the company's Europe trend, where General Mills divested of Yoplait to focus on core global brands of Haagen-Dazs and Bars.
It comes at a time when major CPGs are being increasingly strategic about their SKUs as part of transformation efforts.
Campbell’s, for example, is looking to drop its “soup” identifier as it invests more in other categories. Hains is focusing on key brands in the snacks, baby and kids, beverages, meal prep, and personal care categories, recently selling off the ParmCrisps brand to snack company Our Home as part of efforts to optimize its portfolio.
The General Mills deal is expected to finalize in 2025.
