General Mills announced Thursday that it will spend $1.45 billion to expand its presence in the pet food industry, further diversifying its portfolio. The Golden Valley-based company, which already owns Blue Buffalo, has signed an agreement to acquire Tiki Pets, Cloud Star, and other premium pet food and treat brands from Whitebridge Pet Brands, a Belgian company.
“These brands complement our Blue Buffalo portfolio and will help us grow in the cat food and treats categories,” said Jon Nudi, president of North America pet for General Mills. “We’re excited about the potential to expand our offerings in these high-demand areas.”
Whitebridge Pet Brands, which is recognized as a leader in natural pet nutrition, generated $325 million in revenue over the past year. General Mills views these new brands as “premium,” similar to Blue Buffalo, and expects them to appeal to consumers willing to pay higher prices for quality pet products.
The deal, which is expected to close in early 2025, will not involve rebranding the newly acquired brands as Blue Buffalo products. General Mills will also gain two additional manufacturing facilities in Missouri as part of the transaction. The purchase will be funded through a combination of cash and new debt.
Despite challenges in the pet treat sector, including inflation and shifts in consumer spending habits, the acquisition signals General Mills’ confidence in the long-term growth potential of the pet food category. Pet treats have been a drag on growth for the company’s $2.3 billion pet business, but the acquisition of Whitebridge’s brands reflects General Mills’ ongoing commitment to expanding its pet food portfolio.
The move also aims to address the growing demand for cat food, which could help General Mills capture a larger share of pet owner spending. According to the American Veterinary Medical Association, while dog owners have reduced spending in 2024 compared to 2023, cat owners have actually increased their spending.
“Dog owners spent less overall on their pets this year, while cat owners spent slightly more,” the report notes.
General Mills has been increasingly focused on expanding its pet food business since acquiring Blue Buffalo in 2018. This acquisition follows a string of similar moves, including the purchase of European brand Edgard & Cooper earlier this year. The company had signaled its intention to make an acquisition of up to $2 billion after selling its Yoplait brand for $2.1 billion earlier this fall.
David Clark, a former General Mills executive, described the Whitebridge acquisition as a strategic shift from the slower-growing yogurt business to a more dynamic and growth-oriented pet food portfolio. Clark highlighted the rising trend of pet ownership as a counterbalance to declining birth rates, saying, “Expanding in pet food gives General Mills access to a growing market to help offset population headwinds.”
The acquisition reflects General Mills’ ongoing efforts to tap into the pet food industry, which continues to grow as more people adopt pets.
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