General Mills has announced the expansion of its pet food business with the acquisition of Whitebridge Pet Brands’ North American premium cat feed and pet treats business, valued at $1.45 billion. The purchase will enhance the company’s position in the pet space, with Whitebridge’s pet business generating $325 million in U.S. sales over the past year.
Jon Nudi, the group president of General Mills’ pet division, expressed excitement about the acquisition, stating that it complements their Blue Buffalo portfolio and will help them grow in the cat feeding and treats market. The acquisition includes popular brands such as Tiki Pets and Cloud Star.
TD Cowen analyst Robert Moskow noted that the acquisition reflects General Mills’ strategic focus on the pet food landscape, particularly in the high-growth premium wet cat feeding segment. This move follows General Mills’ previous acquisitions in the pet food industry, including the $8 billion purchase of Blue Buffalo in 2018.
With the U.S. pet food category projected to reach nearly $60 billion in sales this year and continue growing at a compound annual growth rate of 5.2% through 2029, General Mills is positioning itself for success in this lucrative market.
As cereal producers diversify their revenue streams amid long-term sales decline, companies like Post Holdings are also entering the pet food market with significant acquisitions. Post Holdings, known for brands like Cocoa Pebbles and Honey Bunches of Oats, made two major purchases in the pet food category last year.