General Mills has agreed to divest its Brazilian operations to domestic food and beverage group Grupo 3corações, marking a significant step in the US company’s ongoing portfolio reshaping.
The transaction includes two manufacturing sites located in Pouso Alegre and Campo Novo do Parecis, along with well-known brands such as Yoki and Kitano. Yoki’s range spans products including popcorn, baking ingredients and seasonings, while Kitano focuses on herbs and spice blends.
While General Mills did not disclose financial details, Grupo 3corações—part-owned by Israel-based Strauss Group—confirmed the deal is valued at approximately R$800 million (around $48 million).
The Brazilian business generated roughly $350 million in annual sales for General Mills, compared to the group’s total revenue of $19.49 billion. Completion of the deal is expected by the end of 2026, subject to regulatory approvals in Brazil.
Grupo 3corações, a joint venture between Strauss Group and São Miguel Holding, already operates in similar categories through brands such as Mrs Clara and Kimimo, alongside bakery lines like Dona Clara, as well as a broad portfolio of coffee and chocolate beverage products.
Pedro Lima, president of Grupo 3corações, said the acquisition supports the company’s strategy to expand beyond its traditional coffee focus. “We are delighted to welcome the much-loved Yoki and Kitano brands. This move represents an important step in bringing us closer to Brazilian consumers across a wider range of consumption occasions.”
General Mills said the divestment aligns with its ongoing efforts to streamline its portfolio and drive sustainable, long-term growth under its Accelerate strategy, introduced in 2021 to boost organic performance.
“The transaction is expected to support margin improvement and sharpen the focus of our international division on key global platforms, including super-premium ice cream, Mexican cuisine, snack bars and pet food,” the company said.
The move follows the announcement in January of the sale of its Muir Glen tomatoes and sauces business.
General Mills is set to release its third-quarter results on 18 March. However, the company recently downgraded its outlook, citing slower-than-expected volume recovery.
Organic sales are now projected to decline by between 1.5% and 2%, compared with earlier guidance of between a 1% drop and 1% growth. At the lower end, this would mirror the 2% decline recorded in fiscal 2025.
Meanwhile, adjusted operating profit and adjusted diluted earnings per share are forecast to fall by 16% to 20%, a steeper drop than the previously anticipated 10% to 15% decline. Both measures had already decreased by 7% in 2025.
