EUROPE – American multinational consumer goods giant, General Mills has announced plans to sell its European dough businesses to Cérélia as it seeks to focus more on high-growth business segments.
The proposed sale would include General Mills’ branded and private label dough business in Germany, the UK, and Ireland – with its Knack & Back and Jus-Rol brands included in the transaction.
Each of the transactions is expected to close by the end of fiscal 2022, subject to regulatory approvals and customary closing conditions.
In Germany for instance, General Mill’s transaction will be subject to appropriate labor consultations, regulatory approvals, and other customary closing conditions.
These divestitures represent a step in the General Mills Accelerate strategy, which is “centered on clear priorities on where to play” – across geographies as well as platforms and brands – to drive long-term growth.
“Internationally, the strategy includes efforts to reshape the company’s portfolio for sustainable, profitable growth by increasing its focus on advantaged global platforms, which include Mexican food, super-premium ice cream and snack bars,” the company states.
Earlier this month, Bloomberg reported that General Mills could potentially be looking to sell its Progresso soup and Hamburger Helper brands.
While no further statement from the company has been made, the potential sale of the brands together with the latest announcement signifies a company on a mission to shake off businesses that do not align with its long-term growth strategy.
Meanwhile, the US breakfast cereal giant has notified retail customers that it’s raising prices in mid-January on hundreds of items across dozens of brands.
They include Annie’s, Progresso, Yoplait, Fruit Roll-Ups, Betty Crocker, Pillsbury, Cheerios, Cinnamon Toast Crunch, Lucky Charm’s, Wheaties, Reese’s Puffs, Trix, and more, according to letters General Mills sent to at least one major regional wholesale supplier.
Cerelia, the potential new owner of General Mills dough business in Europe, is a manufacturer of frozen and refrigerated dough.
The company had sales of €500 million ($560 million) in 2020. It operates 10 manufacturing plants around the world and employs approximately 1,600.
Brands owned by the company include Creapan, Croustipate, Debora, English Bay, Jan, and Pop Bakery.
Earlier this year Cerelia acquired US Waffle, Greenville, SC, a processor of private label waffles and pancakes.
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