Lactalis to Revamp Yoplait and Go-Gurt in Light of 'Make America Healthy Movement'
Leading dairymaker Lactalis is set to evaluate the ingredients in its newly-acquired yogurt brands Yoplait and Go-Gurt. This move aligns with Health Secretary Robert F. Kennedy Jr.'s 'Make America Healthy Movement,' which advocates for changes in the US food supply, including reducing sugar and removing artificial ingredients. The acquisition of General Mills’s US yogurt business was finalized recently, and Lactalis intends to start ingredient discussions imminently, within 30 days, according to Bill Cassidy, CEO of Lactalis US Yogurt.
"That will be one of the first things that we will be doing after this deal closes, is sitting down with them to review their ways of doing business," Cassidy stated in an interview. Prior to the deal’s close, the companies were restricted from discussing such matters, but industry trends are leading to notable changes.
Citing the newer consumer demand for simplicity, Cassidy noted, "It’s all about this movement for more simplicity in your products. There’s more of a groundswell with younger and younger consumers." This echoes broader industry shifts, as seen in commitments by firms like General Mills and Kraft Heinz to phase out synthetic food dyes.
While Kennedy has suggested artificial dyes and seed oils contribute to national health issues like obesity and heart disease—with some positions lacking full scientific backing—the industry is nonetheless responding. Companies such as Nestlé SA and Conagra Brands Inc. have pledged to eliminate synthetic dyes, which health advocates claim enhance the allure of ultraprocessed foods for children.
Demand is increasing for yogurt products, particularly those marketed as high in protein, low in sugar, and featuring simple labels. This trend has been driven partially by the rise of weight-loss medications. Amid inflation, consumers view yogurt as a cost-effective protein source, favoring larger 32-ounce tubs. Cassidy emphasized that encouraging dairy farmers to produce more organic milk is a priority, mentioning challenges in securing organic milk supply. USDA data revealed that in 2021, less than 4% of the US cow herd was certified organic.
Esteve Torrens, CEO of Lactalis USA, remarked that the acquisition complements their existing portfolio and positions Lactalis to capitalize on increasing US yogurt demand, raising their category share from approximately 7% to 20%.
The new division, coined Midwest Yogurt, will encompass about 1,000 employees and two manufacturing facilities in Tennessee and Michigan. Meanwhile, Lactalis USA’s other yogurt brands, such as Stonyfield Organic and siggi’s, will remain part of Lactalis US Yogurt. Groupe Lactalis, based in France, stands as the world's preeminent dairy company.
