GIS General Mills Inc

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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