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General Mills has agreed to sell its North American yoghurt business to French dairies Lactalis and Sodiaal for $2.1bn (£1.6bn).
Following the completion of the transactions, the US and Canadian businesses will operate independently, with Lactalis acquiring the US side and Sodiaal the Canadian operation.
The divestitures include the North American operations of several yogurt brands, including Yoplait, Liberté, Go-Gurt, Oui and Mountain High, as well as manufacturing facilities Tennessee, Michigan and Québec. Collectively, the North American Yogurt business contributed approximately $1.5bn to General Mills’ net sales in the 2023/24 financial year.
The sale is part of General Mills’ ‘Accelerate’ strategy, which the Old el Paso, Cheerios and Häagen-Dazs owner put in place in 2021, to reshape its portfolio.
It already sold off its European holding in yoghurt brand Yoplait to Sodiaal in 2021 as part of its plan.
“Today’s announcement represents another significant step forward for General Mills in advancing our Accelerate strategy and our portfolio reshaping ambitions,” said CEO Jeff Harmening.
“Upon completion of these divestitures, we will have turned over nearly 30% 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.”
Morning update
Agricultural supplies group Wynnstay has appointed a new CEO as Gareth Davies stepped down from the role to focus on a serious family matter.
Davies remains on the board but the business brought in Alk Brand to take the reins from 1 October.
Davies has been on leave since February with chairman Stev Ellwood taking executive responsibilities on an interim basis.
Brand was previously CEO for four years of Westfalia Fruit Group, the UK-headquartered multinational supplier of fresh fruit and plant-based products to international retail, foodservice and wholesale markets. He was also CEO of Hans Merensky Holdings, the governance structure for most of Westfalia Fruit’s shareholders. Before that, from 2012, Brand headed European Oat Millers, the Bedford-based miller and supplier of grain-based ingredients, latterly overseeing its successful sale to and integration with Richardson International.
Finance director Rob Thomas has also been renamed as chief financial officer after taking on increased responsibilities during Davies’ absence.
Ellwood said: “Alk has a significant understanding of agriculture, supply chains and food production as well as wide ranging commercial experience. We welcome him to the Group and look forward to working with him as we continue to take the business forward.
“I also take this opportunity to thank Gareth for the major contribution he has made to the development of the business over many years. He remains a valued and well-respected colleague who remains on the board in an advisory capacity for a further period.”
The FTSE 100 nudged up 0.2% to 8,261.27pts this morning.
Shares in Wynnstay clawed back some of yesterday’s losses, climbing 3.3% to 787.9p as markets opened.
Wynnstay is up 0.7% to 337.3p following news of its CEO appointment.
Early risers included Pets at Home, up 2.3% to 306p, and Naked Wines, up 2.2% to 52.9p.
Fallers so far include Virgin Wines, down 2.4% to 41p, Premier Foods, down 1.5% to 175.4p and Deliveroo, down 1.4% to 157.5p.
Fever-Tree shares ended the day down 11.6% to 762.5p after the mixer brand lowered full-year sales forecast from 10% to 4%-5%.
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