General Mills Sells North American Yogurt Division in $2.1 Billion Deal to Refocus on Core Brands
General Mills, the food giant behind popular brands like Cheerios, announced plans to sell its North American yoghurt business to two French dairy companies, Groupe Lactalis and Sodiaal, in a $2.1 billion transaction. The sale includes its U.S. yogurt unit, which will be acquired by Lactalis, while Sodiaal will take over the Canadian operations.
The move is part of General Mills’ broader strategy to streamline its portfolio and focus on more profitable core brands, as Chief Executive Officer Jeff Harmening highlighted. The yogurt business, which includes well-known brands such as Yoplait and Liberté, has faced increasing competition in the U.S. from rivals like Chobani and Danone’s Dannon.
“The divestiture will help us sharpen focus on key brands that offer stronger growth and higher margins,” Harmening stated. The sale reflects a trend among packaged food companies to divest slower-growing units to control costs and invest in core offerings.
The North American yoghurt business contributed approximately $1.5 billion to General Mills’ fiscal 2024 net sales. The deal is expected to close in 2025, and the company anticipates a 3% dilution in adjusted earnings per share during the first 12 months post-closure.
This decision follows a gradual reduction in General Mills’ yogurt operations. In 2021, the company sold its European yogurt operations to Sodiaal, and now completes the transition by divesting its North American unit.
Yoplait, originally founded in 1964 by a group of French dairy farmers, became a part of General Mills in 1977 through a franchise agreement that granted the American company exclusive marketing rights in the U.S. General Mills later expanded its control by acquiring a 51% stake in Yoplait in 2011, solidifying its position in the yogurt market before this latest sale.
