Even if the discussion lasts already for months

Yoplait, the second best-selling yogurt brand in the world, is a future of great dairy group. Its Director General, Lucien Fa, believes that Yoplait, now co-managed by the cooperative Sodiaal and PAI Partners, can "get to the level of Danone", the leader of the ultra-fresh products, which sells for yoghurt per year EUR 8.5 billion. Provided resume in hand control of its sales, three quarters done through licensing agreements.

4 Billion euros of sales of the brand in the world, 3 billion comes from this type of partnership in force in the Canada, the United States, the Mexico, Australia and in several emerging countries, including the Korea. The only US market absorbs half of the volumes sold under the Yoplait brand in the world. A manna which Yoplait benefits through the royalties that pay him General Mills in respect of the rights in the mark and that the Group would recover by creating an American division. In early September, he sent a mail to its partner to ask him to terminate the contract of manufacture and distribution of yoghurt Yoplait in the United States in two years, on September 9, 2012.

General Mills possible purchaser

Yoplait distributor for almost forty years in the United States, General Mills does not concern the things of the same eye. He sees in its license agreement nothing requiring him to amend and even less to end. "It's normal." "We did are at a very preliminary stage of the negotiation", it indicates in PAI. Even if the discussion lasts already for months.

Yoplait says legally have the right to terminate its agreement with General Mills. "What we are doing is perfectly consistent with the terms of the contract, which is governed by French law." General Mills has another interpretation, based on American law, in which the licenses are perpetual. "The dispute can be solved by s intervening lawyers", explained Lucien Fa.

Why have launched this negotiation, while PAI has sold 50 of Yoplait that he has bought eight years ago It is a "coincidence of timing", say PAI and Lucien Fa, each on his side. But, in practice, the two issues are inevitably linked. Particularly because General Mills has already made clear his interest in a potential acquisition of Yoplait. If he put his hand on the French company, the issue of the American licence would more arise in the same terms.

The us food group, however, is not only on the ranks. Lactalis, the second world cheese French, does not hide its interest for the brand. And other groups, industrial or financial, are likely to study the dossier.

At what price With more turnover of EUR 900 million, operating income of 127 million euros, an increase of 7.5, and a bank debt zero on FY 2009-2010 closed on 30 June, the Yoplait bride is rather attractive. It has demonstrated its ability to debt very quickly by paying off in eighteen months EUR 70 million borrowed for the purchase of the 49 of Dairy Crest in their common to the United Kingdom society. In these circumstances, the sale price would be between 1.3 billion and EUR 1.5 billion for 100 of the capital, knowing that Sodiaal wants to keep a stake in the matter.

Now, the challenge for Yoplait is therefore to find a rich purchaser able to finance its international growth and regain possession of the mark, to enjoy in full the ultra-fresh products sales growth. Especially in the United States, where consumption of yoghurt, still very modest on its level in Europe, leaving augurer of significant margins of growth. Americans to eat still 6 kilos per year, instead of 30 to 40 kilos for Europeans. And sales across the Atlantic is progressing by 5 per year since almost 20 years.

But the ambitions of Yoplait does not stop there. The world consumes a form of yoghurt or milk fermented, but, in many countries, it is still produced in the House and no industrial has yet conquered these markets. This is the case of the India, first dairy market.