General Mills has sold its business in Brazil to local food-and-drinks company Grupo 3corações.
The transaction includes two production facilities in Pouso Alegre and Campo Novo do Parecis. The deal also takes in brands such as Yoki and Kitano. Yoki features products like popcorn, seasonings and baking items. Kitano is a line of seasonings and herbs.
Financial terms were not disclosed by General Mills in a statement. However, 3corações, which is part-owned by Israel-based food-and-drinks business Strauss Group, said in its own statement the deal is valued at R800m ($48m).
The assets generated around $350m in revenue for General Mills in its last year. the The US food heavyweight's total revenue stood at $19.49bn.
General Mills said the deal is expected to close by the end of the 2026 calendar year, subject to regulatory approval in Brazil.
3corações, which is a jointly split venture between Strauss and São Miguel Holding, already has a presence in those food categories through the brands Mrs Clara and Kimimo, according to its website. The company also supplies bakery products with the likes of Dona Clara, along with a range of coffee brands and chocolate drinks.
Pedro Lima, the president of Grupo 3corações, said the brands acquired from General Mills will support its expansion outside of coffee into food. "We are excited about the arrival of the consumer-loved brands Yoki and Kitano. This is a fundamental step in our purpose of being ever closer to the Brazilian family, making ourselves present in different consumption occasions."
General Mills said in its statement the disposal forms part of its “priority to reshape its portfolio to generate long-term profitable growth, in line with its Accelerate strategy”. The Blue Buffalo pet-food owner launched Accelerate in 2021 to speed up its organic growth.
The company added: “The transaction increases the company’s operating profit margin and enhances the international segment’s focus on its priority global platforms, including super-premium ice cream, Mexican food, snack bars, and pet food.”
General Mills announced the disposal of its Muir Glen tomatoes and sauces brand in January,
The Cheerios maker is due to issue its third-quarter results tomorrow (18 March).
Last month, the business wiped out any prospect of organic sales growth this year as volumes take longer than expected to recover. The outlook for sales and profits were cut before the Consumer Analyst Group of New York (CAGNY) annual conference got underway.
Organic sales are forecast to fall by 1.5% to 2% compared to the previous estimate provided in December for a range of down 1% to up 1%.
In the worst-case scenario, the new forecast would match the 2% decline in fiscal 2025.
Adjusted operating profit and adjusted diluted EPS are expected to be down 16% to 20% this year, compared to the December guidance range of down 10% to 15%. Both of those metrics decreased 7% in 2025.
