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General Mills announces agreement to buy Small Planet Foods

Published on .

General Mills has announced an agreement in principle to purchase organic and natural foods marketer Small Planet Foods. Sales for Small Planet's leading Cascadian Farm brand, which includes organic frozen fruits, vegetables, juices and entrees, and the Muir Glen line of organic canned tomatoes, pasta sauces, salsa and condiments, total approximately $60 million annually. General Mills' intended buy follows moves by other mainstream marketers to gain entree into the natural and organic category, sales for which have been growing by more than 20% annually. Recent activity includes Kellogg Co.'s acquisition of natural food marketer Worthington Foods and H.J. Heinz Co.'s stake in Hain Food Group.

Copyright December 1999, Crain Communications Inc.

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