Processed food giant General Mills announced on Wednesday that it will be selling its yogurt business in North America. According to the company, the decision was made with the intention of putting a stronger emphasis on its core brands, which include cereal brand Lucky Charms, ice cream brand Häagen-Dazs, and cake products brand Pillsbury.
General Mills’ yogurt business in North America, which includes brands Go-Gurt, Yoplait, and Liberté, will be sold in a $2.1 billion deal to French companies Groupe Lactalis and Sodiaal. Lactalis will take over the business in the U.S., while Sodiaal will take over operations in Canada.
General Mills, which has been seeking to sell the yogurt business since April, expects deals with Lactalis and Sodiaal to close at some point in 2025.
While General Mills saw a $1.5 billion contribution from its North American yogurt business to its net sales for fiscal 2024, the company is facing increased competition from fast-rising rivals like Chobani.
“Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions,” Jeff Harmening, CEO of General Mills, said in a statement. “Upon completion of these divestitures, we will have turned over nearly 30 percent of our net sales base since fiscal 2018. By efficiently managing our portfolio and sharpening our focus on our global platforms and local gem brands that have stronger growth prospects and more attractive margins, we will be in a better position to drive top-tier shareholder returns over the long term.”