US-based food company General Mills has completed the sale of its Venezuela business to private investor Lengfeld, exiting from the country.
The sale of the Venezuelan business includes brands such as Underwood, Rico Jam and Frescarini, and other associated operations in the country.
The US food company employs around 611 people in Venezuela. The decision will not affect any of them and they would continue to remain with the divested business.
Since 2001, General Mills has been managing the Underwood brand in Venezuela, which is the largest part of its Venezuelan portfolio. It had acquired the brand from Pillsbury.
Meanwhile, the company has also announced plans to introduce GMO labeling on its food products, following the US Senate's rejection of the bill for a unified biotech food labeling law.
The company announced its decision which will comply with the Vermont state law to label genetically modified foods, which will begin to take effect from 1 July this year.
General Mills recently announced plans to expand cereal manufacturing facility in Albuquerque, New Mexico, for $80m. The company has applied for $80m industrial revenue bond (IRB) from Bernalillo County to expand the facility.
The company's application reveals that the investment will be used in facility upgrades and installation of new equipment, which will result in 30 new jobs.
General Mills is also taking steps to increase its organic acreage to offer healthier options to customers. By 2019, it plans to reach its goal of 250,000 acres by more than doubling its organic acreage sourcing for ingredients.
The company is also planning to increase the acreage to meet the growing demand for natural and organic foods as it looks to boost sales from organic and natural products.
Image: Cereal maker General Mills offloads Venezuelan business. Photo: Courtesy of joephotostudio/FreeDigitalPhotos.net.
