What is prompting General Mills to make a $1.2 billion leap into the yogurt business? It isn't fear of losing its lucrative Yoplait license, CEO Ken Powell suggested.
"This is a very significant opportunity to create very consistent, long-term growth by participating in one of the best categories there is," Powell told analysts Wednesday. Yogurt "is a $40 billion category globally with very favorable growth characteristics. It works in developed markets. It works in developing markets."
Last week, the Golden Valley-based foodmaker said it was nearing a $1.14 billion deal to buy 51 percent of Yoplait, the French yogurt that General Mills has been selling as a licensee since the 1970s. The deal hasn't closed or been reviewed yet; Powell said he expects that to be completed this summer.
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