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For big CPGs, it was a summer of snacks M&A, as some of the biggest names in the food biz reshaped their portfolios by buying and selling notable names in snacking, from Go-Gurt to Cheez-It.
Dairy to be different: General Mills announced this week its plans to sell its yogurt business—including Yoplait, Go-Gurt, and Oui—to French dairy companies Lactalis and Sodiaal for $2.1 billion. Lactalis will buy the US business, while Sodiaal will acquire the Canadian business.
The deal, expected to close next year, also encompasses a number of manufacturing facilities in the US and Canada. The company’s yogurt business contributed $1.5 billion in net sales for General Mills in fiscal 2024. Chair and CEO Jeff Harmening noted in a statement that the divestiture is part of its “portfolio reshaping ambitions.”
“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,” he said.
Chipping away: Candy and snack giant Mars last month said it entered an agreement to buy Kellanova—which includes snack brands Pringles, Cheez-It, Pop-Tarts, Rice Krispie Treats, and RXBar—for $36 billion.
Kellogg Company officially split into two companies—Kellanova and with its North American cereal business WK Kellogg Co—last October. Kellanova brought in $13 billion in net sales in 2023, per Mars. Mars CEO Poul Weihrauch said the acquisition will help the company “develop a sustainable snacking business that is fit for the future.” Mars’s snack portfolio includes KIND, which it bought in 2020.
Ready to pop: Campbell Soup Company sold its Pop Secret popcorn brand, which amassed $120 million in fiscal 2024, to Popchips owner Our Home, last month for an undisclosed amount. Campbell’s Snacks EVP and president Chris Foley said the move aims to boost growth for its Snacks division. Our Home also bought ParmCrisps earlier this month from Terra chips maker Hain Celestial Group to build out its better-for-you snacking portfolio.
Campbell Soup Company is also trying to part ways with its own name. It wants to drop “soup” from its name to become The Campbell’s Company, reflecting its expanding portfolio beyond soup, pending shareholder approval. The company could also possibly split its snacks business from its meals and beverage business, CEO Mark Clouse said this week.