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General Mills, the US food giant, has entered into an agreement to sell its Brazil-based dough business to 3Coracoees, the largest coffee roaster in South America, for an undisclosed sum.
The transaction includes the Carolina brand, the chilled dough and pasta segments of the Yoki brand, and a manufacturing facility in Ribeirao Preto. General Mills, which acquired the Yoki business in 2012 for approximately $900 million, will retain Yoki’s snacks and seasonings lines. The assets involved in the sale generated around $45 million in net sales during the last fiscal year.
According to General Mills, the move is part of an ongoing strategy to reshape its portfolio. “This transaction is part of General Mills’ Accelerate strategy, which includes a focus on prioritising markets and brands where we have the greatest opportunities for profitable growth”, the company said in a statement.
For 3Coracoes, a joint venture between Strauss and Sao Miguel Holding, the deal represents a strategic expansion beyond its core beverage portfolio and marks its 30th acquisition.
The transition is expected to be completed in the first half of the next fiscal year, subject to regulatory approval from Brazil’s antitrust regulator CADE.
In 2021, General Mills also sold its dough business in Europe, with Cerealia the buyer.
Source: FoodBev / Just Food / Reuters
