General Mills sells North American Yogurt Business for $2.1 Billion
What's Happening?
General Mills announced on Tuesday, July 25th, 2023, that it will sell its North American yogurt business to French dairy company Lactalis for $2.1 billion. The transaction is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions.
The divestment includes the Yoplait brand, the company's manufacturing facilities, and its distribution network in the United States and Canada. General Mills will retain its yogurt operations in other international markets.
Why is General Mills Selling its Yogurt Business?
General Mills has been struggling financially in recent years, and divesting its yogurt business is part of a plan to focus on its more profitable core businesses. The company has been facing increased competition from both traditional and plant-based yogurt brands, and its yogurt sales have been declining in recent years.
In a statement, General Mills CEO Jeff Harmening said, "The sale of our North American yogurt business is part of our ongoing portfolio transformation to focus on our core strengths and unlock additional value for our shareholders. Yogurt has been a valuable part of our portfolio for many years, but we believe that Lactalis is better positioned to maximize its potential in the future."
What Does this Mean for Consumers?
The sale of General Mills' North American yogurt business is unlikely to have a major impact on consumers. Lactalis is a major dairy company with a strong track record in the yogurt market. It is likely that Lactalis will continue to produce and distribute Yoplait yogurt in the same way that General Mills has been.
What's Next?
The sale of General Mills' North American yogurt business is a major event for the company and for the yogurt industry. It remains to be seen what impact the sale will have on the long-term competitiveness of both companies.
Conclusion
General Mills' decision to sell its North American yogurt business is a sign of the changing landscape of the food industry. As consumers seek healthier and more sustainable food options, companies are adjusting their portfolios to meet the evolving demands of consumers.
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