General Mills, Inc. is reportedly considering the sale of its North America yogurt business in a deal that could fetch the company over $2 billion, according to sources familiar with the situation as reported by Reuters. The Minneapolis-based maker of Yoplait yogurt has enlisted the help of New York-based investment firm JPMorgan Chase to facilitate the sale.
The move comes as General Mills faces increasing competition in the yogurt market from industry leaders such as Chobani and Dannon. The company’s yogurt brands include Yoplait, Oui, Liberte, and Ratio Food.
General Mills acquired a majority stake in Yoplait back in 2011, and in 2021, the company sold its European operations to Sodiaal, retaining ownership of the brand in Canada and the US. Despite efforts to revamp its yogurt offerings, General Mills has seen a slight decline in yogurt sales in recent quarters.
CEO Jeffrey L. Harmening has acknowledged the challenges facing the yogurt category and has outlined plans to improve competitiveness and drive growth. The company is focusing on expanding its presence in the low-sugar weight management space and increasing innovation in its product lines.
General Mills is not alone in reassessing its yogurt business, as Campbell Soup Co. is also exploring options for its noosa yogurt brand following its acquisition of Sovos Brands, Inc. earlier this year.
As General Mills navigates the changing landscape of the yogurt market, the potential sale of its North America yogurt business could mark a significant shift in the company’s strategic direction.