General Mills is looking to expand the recently acquired Yoplait brand globally, especially in developing markets like China and India, the Star Tribune reported, citing information shared by company executives at General Mills' annual investor day.
Golden Valley-based General Mills announced earlier this month that it had completed the $1.2 billion acquisition, which gave it a 51 percent stake in Yoplait, S.A.S.
Yoplait's global operations are reportedly expected to add $1.2 billion to General Mills' annual revenue-marking a 41 percent boost in sales for the company's international division. And the company should see a significant increase in earnings, too, the Star Tribune reported.
According to General Mills, Yoplait is the second-largest yogurt brand in the world. General Mills has licensed the brand from Yoplait for more than three decades. Sodiaal, a French dairy cooperative, remains Yoplait's other main owner.
General Mills' International Operations Chief Chris O'Leary told analysts that the company expects "robust" growth in the coming years with the global yogurt brand. Of General Mills' five international growth platforms-which include cereal, ice cream, snack bars, ready-to-eat meals, and yogurt-yogurt is expected to grow fastest, according to the Star Tribune.
The Pioneer Press noted, however, that General Mills plans to proceed with caution. The St. Paul newspaper pointed out that O'Leary told investors not to "expect us to try to attack 10 markets at once, because that wouldn't be smart, and some of those markets aren't ready."
General Mills is Minnesota's eighth-largest public company based on its revenue, which totaled $14.8 billion during the fiscal year that ended in May 2010. The company reported revenue of $14.9 billion in its most recently completed fiscal year.