Food Distributor General Mills Inc. (NYSE: GIS) has bought yogurt maker Carolina Administracao e Participacoes Societarias Ltda. for an undisclosed amount.
Carolina, headquartered in Ribeirao Claro, Brazil, produces yogurt and other dairy products under the Carolina, VeryGurt and Gluck brands. “Brazil is a strategic market for General Mills and yogurt is a growing category,” says General Mills president Olivier Faujour. Other strategic buyers, such as WhiteWave Foods Co. (NYSE: WWAV), are adding yogurt products.
General Mills, based in Minneapolis, has been restructuring its product line as it recently missed earnings estimates mainly because of slumping cereal sales. Earlier in 2015, the company announced plans to sell its Green Giant and Le Sueur vegetable businesses to B&G Foods Inc. (NYSE: BGS). General Mills owns the Cheerios, Cinnamon Toast Crunch, Lucky Charms and Wheaties cereal brands.
Strategic buyers have been active with acquisitions in the food sector lately. Glanbia plc (LON: GLB) is acquiring protein bar maker ThinkThin; Hain Celestial Group Inc. (Nasdaq: HAIN) is buying fruit company Orchard House Foods Ltd.; and Pinnacle Foods Inc. (NYSE: PF) is purchasing Smart Balance owner Boulder Brands (Nasdaq: BDBD).