General Mills Sells North American Yogurt Business to Strengthen Brand Focus
General Mills Takes Strategic Step Forward
General Mills will sell its North American yogurt business to French dairy firms Groupe Lactalis and Sodiaal in a $2.1 billion transaction. This decision underscores the company's intention to focus on core brands with better profit margins.
Market Pressures Inform Decision
The move comes amid increasing competition from Chobani and Dannon, putting pressure on its Yoplait line. Historically, Yoplait was launched by French farmers and later partnered with General Mills.
- The U.S. segment will transition to Lactalis.
- Sodiaal to acquire the Canadian operations.
- Yoplait contributed approximately $1.5 billion to General Mills’ net sales in fiscal 2024.
Financial Impact
General Mills anticipates that this divestiture will dilute adjusted earnings per share by about 3% within the first year post-closure.
Reevaluation of Brand Strategy
General Mills aims to realign its portfolio to prioritize products yielding stronger margins, as it responds to consumer preferences for more affordable options. This strategic realignment emphasizes a commitment to its core brands.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.