General Mills has sold its US yogurt business to French dairy giant Lactalis, officially exiting the US yogurt market. The move marks a strategic pivot for the US food giant, which aims to sharpen its focus on higher-growth categories like snacks, pet food, and ice cream.
General Mills expects to use the net proceeds from the transaction for share repurchases and debt reduction.
For Lactalis, the deal provides scale and a stronger US foothold, with the acquisition of General Mills’ US yogurt brands like Yoplait Go-Gurt, Oui, Mountain High and :ratio. The US yogurt business contributed approximately US$1.2 billion in General Mills’ fiscal 2025 net sales.
“This acquisition advances our US growth strategy and strengthens our position as an emerging leader in the US yogurt market,” says Lactalis USA CEO Esteve Torrens.
“Incorporating the popular Yoplait brand into our house of US dairy product brands will create important, new opportunities for growth and product innovation, as well as positive impacts for our customers, communities and employees.”
The divestiture includes approximately 1,000 employees and two manufacturing facilities in Murfreesboro in Tennessee and Reed City in Michigan.
Lactalis USA’s yogurt business now comprises two divisions, Lactalis US Yogurt and the newly formed division Midwest Yogurt. The acquired business will operate as Midwest Yogurt based in Minneapolis, where the firm plans to invest heavily.
Last year a broader US$2.1 billion deal covering both US (to Lactalis) and Canadian (to Sodiaal) operations was announced, which was followed by regulatory clearance last month.
Source: foodingredientsfirst.com
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