General Mills completes sale of its Venezuela business

US-based global food company General Mills has completed the sale of its business in Venezuela to a private international investor Lengfeld.

With the completion of the sale, that includes General Mills’ Rico Jam, Frescarini and Underwood brands, as well as all associated operations in the country, the food company exits the Venezuelan market.

General Mills currently has nearly 611 employees serving in Venezuela, all of whom will continue to work with the divested business.

General Mills Latin America president Sean Walker said: "This is a decision to prioritise other growth opportunities within our Latin American portfolio.

"We would like to thank members of the General Mills Venezuela team, who have performed well despite challenging external conditions."

Headquartered in Minneapolis, Minnesota, General Mills has operated the Underwood business in Venezuela since 2001.

General Mills had taken over the Underwood brand, which is the largest part of the food company’s portfolio in the South American country, as part of its Pillsbury acquisition.

The company will provide further details on the transaction when it declares its fiscal 2016 third-quarter results on 23 March.

In addition to this, General Mills will have to accept Vermont’s labelling rules for its products across the US.

The General Mills products that contain genetically modified organisms (GMO) will start using GMO labelling nationwide imposed by a labelling law that goes into effect on 1 July in Vermont.