Sodiaal announces an agreement with General Mills to acquire the Yoplait and Liberté brands operations in Canada

PARIS, Sept. 12, 2024 /CNW/ - Following the successful acquisition of Yoplait's operations in Europe and the ownership of the Yoplait and Liberte brands globally in 2021, Sodiaal has entered into a definitive agreement with General Mills to acquire Yoplait and Liberté operations in Canada.

This transaction is further testament of the ongoing strategic initiatives and positive momentum with Sodiaal reinforcing its position as a global leading dairyplayer. It also marks a key milestone in Sodiaal's strategy to enhance brand value and expand internationally as part of its "Grandir Ensemble" strategic plan.

Concurrently, General Mills has entered into a definitive agreement to sell its U.S. yogurt operations to Lactalis, including, notably, the rights to operate the Yoplait and Liberté brands, of which Sodiaal would retain exclusive ownership.

The transaction is subject to receipt of requisite regulatory approvals and other customary closing conditions.

Sodiaal resumes operations in Canada, a historic and valuable market

This transaction strengthens Sodiaal's FMCG (Fast Moving Consumer Goods) division, with a well-balanced portfolio of diversified and successful brands under Yoplait (Source, Crémeux, Yop, Minigo, Tubes) and Liberté (in particular the Greek and Mediterranean ranges). Yoplait and Liberté products are particularly appreciated by Canadian consumers, who value the French dairy expertise and know-how of the cooperative since 1971.

The resumption of Sodiaal's operations in Canada represents an additional value-creating lever for the cooperative's farmers. This transaction contributes to Sodiaal's international development, confirming its leading role in the global fresh dairy market. With a high penetration rate (89%) and frequent purchases, the local fresh dairy market in Canada totaling CAD 1.9 billion [in 2023], offering a strong growth potential for Yoplait in this region.

"We are proud to have signed this agreement with General Mills to take over the activities of our Yoplait and Liberté brands in Canada. This project further confirms Yoplait's return to the cooperative's vision, a true national heritage brand that makes our farmers and employees proud. This acquisition strengthens our presence around the world and further promotes our French dairy expertise, which is appreciated across the Atlantic" declares Jean-Michel Javelle, President of Sodiaal.

The Sodiaal cooperative strengthens its international activities.

The resumption of its operations strengthens Sodiaal's international expertise, which already manages Yoplait's activities in Europe and franchises in 40 countries worldwide.

With this agreement, Sodiaal will oversee Yoplait's operations in Canada, generating an annual revenue of approximately CAD 500 million (EUR [340] million) by May 26, 2024. The transaction includes a manufacturing site located in Saint-Hyacinthe, Quebec.

The transaction will lead to the termination of the Yoplait and Liberté brand licensing agreement with General Mills and the establishment of a new licensing agreement for these brands in the U.S. with Lactalis. The Yoplait and Liberté brands will remain under the exclusive ownership of Sodiaal worldwide.

An Operation Aligned with the "Grandir Ensemble" Strategic Plan

This project is part of the "Grandir Ensemble" strategic plan.

Thus, the cooperative is taking a new strategic direction focused on collective strength, operational performance, brand value enhancement, and international expansion. The strength of the brands and the richness of the cooperative's expertise are a powerful lever for increasing its global presence, growing in promising market segments in all dairy sectors, and ultimately securing the future of the French dairy industry through stronger, more profitable, and sustainable operations. Sodiaal is the leading French dairy cooperative, with 15,300 farmers spread across 72 departments.

This plan aims to make the dairy profession attractive by creating value levers for member farmers and continuing investments in farms and production sites, ensuring that sustainability matches economic performance.

"This agreement fits perfectly with our new strategy, Grandir Ensemble, aimed at creating value through the brand and developing our international presence. With the Canadian teams, we will continue to expand internationally, expanding through healthy, tasty, and accessible dairy products for consumers. Furthermore, the conclusion of a new licensing agreement for Yoplait in the U.S. with Lactalis demonstrates the attractiveness and potential of our iconic brand" said Antoine Collette, Chief Executive Officer of Sodiaal.

About Sodiaal

As France's leading dairy cooperative (accounting for 20% of collected milk), Sodiaal boasts over 15,300 member producers across 8,523 farms in 72 departments. Committed to delivering the finest dairy products, Sodiaal is active in all areas of the dairy industry: cheeses (Entremont, Monts & Terroirs, les Fromageries Occitanes, Blamont), liquid milk, cream, and butter (Candia), ultra-fresh products (Yoplait), specialized nutrition (Nutribio), and dairy ingredients (Eurosérum, Bonilait). The cooperative is chaired by Jean-Michel Javelle, with Antoine Collette serving as Chief Executive Officer.

SOURCE Sodiaal

Press Contacts: Wendie Godbout - [email protected] - 514-995-9070