Dive Brief:
- General Mills plans to sell its business in Brazil to food and beverage owner 3corações for roughly $153 million ($800 million Brazilian Real) as the snack and cereal maker aims to boost its margins and sharpen its international focus. The Brazil business contributed approximately $350 million to General Mills’ fiscal 2025 net sales, which totaled $19.5 billion.
- The proposed transaction, which includes a portfolio of leading local brands such as Yoki and Kitano, is expected to close by the end of 2026. The sale is subject to regulatory approvals and other customary closing conditions.
- Once the sale is completed, General Mills said it will have turned over nearly one-third of its portfolio through acquisitions and divestitures since fiscal 2018.
Dive Insight:
As General Mills and other food competitors struggle amid a pullback in consumer spending and shifting eating habits, they have been moving aggressively to strengthen their existing operations.
Earlier this week, General Mills announced plans to revive regional taco shell maker La Tiara, and in January, it sold its Muir Glen tomato brand to a private equity firm. The food giant also cut prices recently on nearly two-thirds of its grocery products in North America in an effort to appeal to a growing number of consumers looking for value.
The tough environment has weighed heavily on General Mills. During the third quarter, General Mills said retail net sales in North America fell 14% to $2.6 billion, weighed down by recent yogurt divestitures.
The Chex Mix and Nature Valley manufacturer, however, said international, which generates about 15% of its sales, was a bright spot. Net sales outside of North America, which includes India, Europe and China, rose 7% to $696 million as it benefited from favorable foreign currency exchange rates.
