General Mills Sells North American Yogurt Operations

General Mills, the owner of some of the leading products in baking, ice cream, cereals, and pet food, has agreed to sell its North American yogurt operations.

A company press release states that General Mills entered into “definitive agreements” to sell its North American Yogurt business to Lactalis and Sodiaal, two leading French dairy companies, in cash transactions. The sale is valued at around $2.1 billion.

“The divestitures encompass the U.S. and Canada operations of several yogurt brands including Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and :ratio, as well as manufacturing facilities in Murfreesboro, Tenn., Reed City, Mich., and Saint-Hyacinthe, Québec. Collectively, the North American Yogurt business contributed approximately $1.5 billion USD to General Mills’ fiscal 2024 net sales,” it reads.

General Mills Chairman and Chief Executive Officer Jeff Harmening said in a statement, “Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions. Upon completion of these divestitures, we will have turned over nearly 30 percent of our net sales base since fiscal 2018. 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.”

General Mills to Sell North American Yogurt Business for $2.1 Billion https://t.co/aFrKqAYjdr

— WSJ Business News (@WSJbusiness) September 12, 2024

“We would also like to take this time to thank our North American Yogurt team members for their significant contributions,” Harmening continued. “In Lactalis and Sodiaal, we believe we’ve found the right homes for these businesses, with dairy-focused owners who are well equipped to drive success for our people and growth for these brands into the future.”

General Mills makes food the world loves. The company is guided by its Accelerate strategy to “boldly build its brands, relentlessly innovate, unleash its scale and stand for good.”

General Mills’ portfolio features popular brands such as Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Totino’s, Annie’s, Wanchai Ferry, Yoki, and many more. The company reported fiscal 2024 net sales of $20 billion, with an additional $1 billion from its share of non-consolidated joint venture sales.