General Mills to Swap Yoplait Europe Stake for Full Canada Ownership
March 23 2021 - 9:19AM
Dow Jones News
By Colin Kellaher
General Mills Inc. on Tuesday unveiled plans to swap its
European Yoplait yogurt ownership interests for full control of the
brand in Canada.
The Minneapolis food maker said it agreed to sell its 51%
controlling interest in Yoplait SAS to French dairy cooperative
Sodiaal in exchange for Sodiaal's 49% stake in Yoplait Canada
Holding Co. and a reduced royalty rate for use of the Yoplait and
Liberte brands in the U.S. and Canada.
General Mills said Yoplait Canada, which generated $290 million
in sales in fiscal 2020, would become a wholly owned unit, adding
that it would then have full ownership of yogurt operations in the
U.S. and Canada that generated a combined $1.4 billion in net sales
in fiscal 2020 and will now distribute Yoplait and Liberte branded
products on a royalty-free basis.
The company said the Yoplait SAS business, which would be wholly
owned by Sodiaal, posted fiscal 2020 sales of $740 million.
General Mills said it expects to complete the swap by the end of
the year.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 23, 2021 09:04 ET (13:04 GMT)
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