General Mills to divest its business in Brazil to 3corações by end of 2026
The divestiture is part of its ongoing Accelerate strategy to reshape the portfolio and concentrate resources on priority global platforms, including super premium ice cream, Mexican food, snack bars, and pet food, to improve long term profitable growth and raise operating profit margins.
USA – General Mills, Inc. has entered into a definitive agreement to divest its Brazil operations to 3corações, marking a strategic pivot to streamline its global portfolio, enhance profitability, and focus on high-growth platforms.
The transaction encompasses prominent local brands Yoki and Kitano, as well as key supply chain facilities in Pouso Alegre and Campo Novo do Parecis, with closure anticipated by the end of 2026, pending regulatory approvals.
The Brazil business generated approximately US$350 million in net sales during General Mills’ fiscal 2025, representing a modest but non-core segment amid the company’s US$19 billion annual revenue base.
This divestiture aligns seamlessly with General Mills’ Accelerate strategy, launched in 2021, which prioritizes organic growth, margin expansion, and concentration on priority international categories such as super-premium ice cream, Mexican foods, snack bars, and pet food.
By offloading Brazil, the company anticipates an uplift in operating profit margins, allowing sharper resource allocation to its stronger platforms, where it holds competitive advantages.
Since fiscal 2018, General Mills has aggressively reshaped nearly one-third of its portfolio through a mix of acquisitions and divestitures, demonstrating disciplined capital discipline in a competitive consumer packaged goods landscape.
Yoki, a beloved Brazilian staple for popcorn, seasonings, and baking mixes, and Kitano, known for herbs and spices, have deep local roots but diverged from General Mills’ global brand synergies, making the sale a logical fit for 3corações, a powerhouse in coffee, bakery, and related categories backed by São Miguel Holding and Israel’s Strauss Group.
Goldman Sachs served as the exclusive financial advisor to General Mills for the transaction, and KLA Avogados served as legal advisor, though deal terms remain undisclosed.
For General Mills, the exit represents a commitment to improving operating profit margins and maintaining a leaner, more focused international segment.
General Mills announced the disposal of its Muir Glen tomatoes and sauces brand in January.
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