General Mills sells North American yogurt business

French dairy co-operative Sodiaal resumes operations in Canada by acquiring the Canadian yogurt business of General Mills. This follows Sodiaal’s acquisition of Yoplait’s operations in Europe and the global ownership of both the brands in 2021.

General Mills is also selling its U.S. yogurt business to Lactalis. Both these transactions are valued at an aggregate US$2.1 billion. The divestitures encompass the U.S. and Canada operations of several yogurt brands including Yoplait, Liberté, Go-Gurt, Oui, and Mountain High, as well as manufacturing facilities in Murfreesboro, Tenn., Reed City, Mich., and Saint-Hyacinthe, Que. Collectively, the North American Yogurt business contributed approximately US$1.5 billion to General Mills’ fiscal 2024 net sales.

Lactalis will have the rights to operate the Yoplait and Liberté brands in the U.S. but Sodiaal would retain exclusive ownership of the two brands.

“We are proud to have signed this agreement with General Mills to take over the activities of our Yoplait and Liberté brands in Canada. This project further confirms Yoplait’s return to the co-operative’s vision, a true national heritage brand that makes our farmers and employees proud. This acquisition strengthens our presence around the world and further promotes our French dairy expertise, which is appreciated across the Atlantic,” said Jean-Michel Javelle, president of Sodiaal.

“Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions,” said General Mills chair and CEO Jeff Harmening. “Upon completion of these divestitures, we will have turned over nearly 30 per cent 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.”

The proposed transactions are expected to close in 2025, subject to receipt of requisite regulatory approvals and other customary closing conditions. General Mills expects to use the net proceeds from the transactions for share repurchases.