General Mills to sell stake in Yoplait’s Europe unit to Sodiaal and take full ownership in Canada
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24 Mar 2021 --- General Mills is set to sell its 51 percent controlling interest in Yoplait to Sodiaal, a leading French dairy cooperative.
The proposed transaction is expected to close by the end of calendar 2021, subject to appropriate labor consultations, regulatory filings and other customary closing conditions.
In exchange, General Mills will acquire Sodiaal’s 49 percent ownership interest in Yoplait Canada Holding, making the Yoplait Canada yogurt business – which generated US$290 million in net sales in fiscal 2020 – a wholly owned subsidiary of General Mills.
General Mills will assume a royalty-free rate for use of the Yoplait and Liberté brands in the US and Canada.
“This transaction allows us to accelerate our Europe and Australia segment’s growth by increasing our focus on our advantaged global platforms, including Mexican food, super-premium ice cream and snack bars,” says Dana McNabb, group president of General Mills’ Europe and Australia segment.
“At the same time, we are pleased to be returning the European Yoplait business to the brand’s original creator and our trusted partner, Sodiaal. The General Mills team will work diligently alongside Sodiaal to ensure a smooth transition as this business enters its next chapter.”
Yoplait’s yogurt operations in the US and Canada generated a combined US$1.4 billion in net sales in fiscal 2020.
The proposed transaction is expected to close by the end of 2021.Net sales total US$740 million
Net sales for the Yoplait business that would be wholly owned by Sodiaal totaled US$740 million in fiscal 2020.
Following completion of the transaction, Yoplait will operate yogurt businesses in France, the UK, and certain other markets. It will manage a network of 28 franchisees manufacturing and distributing Yoplait branded products in more than 40 countries.
“We’re taking another step toward advancing our Accelerate strategy and further reshaping our portfolio to drive profitable growth for the long term,” says General Mills chairman and CEO Jeff Harmening.
“[This transaction] increases our focus on the brand platforms that have the greatest growth potential.”
Edited by Benjamin Ferrer
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