General Mills has finalized a $2.1 billion deal to sell its North America yogurt operations to French dairy giants Groupe Lactalis and Sodiaal, aiming to focus on higher-growth brands and streamline its portfolio. The sale includes U.S. and Canadian operations and is expected to close in 2025.
In a significant move, General Mills has agreed to sell its North America yogurt business to French dairy companies Groupe Lactalis and Sodiaal in a $2.1 billion deal. This transaction, aimed at focusing on stronger brands and improving margins, comes as the Minnesota-based food giant seeks to streamline its portfolio by divesting low-growth assets.
Groupe Lactalis, a global dairy leader, will acquire General Mills’ yogurt business in the United States, while Sodiaal, a major French dairy cooperative, will take over the Canadian operations. This sale aligns with General Mills’ strategy of focusing on its core brands that deliver higher growth, such as Cheerios and Bisquick.
According to General Mills CEO Jeff Harmening, this divestiture will allow the company to sharpen its focus on brands with stronger market positions and better margins. Yoplait, one of the company’s key yogurt brands, has faced increasing competition in the U.S. from rivals such as Chobani and Danone’s Dannon.
The North American yogurt division contributed approximately $1.5 billion to General Mills’ fiscal 2024 net sales. Despite this, the company believes selling this segment will allow for greater flexibility in developing its other product lines. The deals are expected to close in 2025, with an anticipated 3% dilution in adjusted earnings per share during the first year after the transaction’s completion.
General Mills, headquartered in Golden Valley, Minnesota, has been involved in the yogurt business since 1977 through a franchise agreement with Yoplait, a brand created by French dairy farmers in 1964. In 2011, General Mills acquired a majority stake in Yoplait, solidifying its presence in the North American market. However, as part of its restructuring efforts, General Mills sold its European yogurt operations to Sodiaal in 2021.
This strategic move reflects the company’s shift towards focusing on higher-margin brands while responding to consumers’ increasing demand for more affordable food options.
