28 May 2009 - Sara Lee Corporation is planning to focus its resources on its international beverage activities and on sales in North America, both of which are described as "core categories".
The company may also divest unattractive businesses and expand in high-growth developing markets such as Russia, India and Brazil.
At an investor meeting yesterday, Sara Lee's CEO, Brenda C. Barnes, argued that these strategies would deliver shareholder value.
The CEO also provided an update on "Project Accelerate", the company's cost-saving initiative designed to deliver more than USD 250 million annually by fiscal 2011. Barnes said that the company is rapidly making progress on the project, which includes business process outsourcing, SG&A reduction, supply chain optimization and ongoing continuous improvement as well as LEAN initiatives.
Commenting more specifically on the North American retail core category, CJ Fraleigh, CEO of Sara Lee's North American Retail and Foodservice business, said the division's good momentum was growing. In addition, key selling brands, such as Sara Lee, Hillshire Farm, Jimmy Dean and Ball Park, are offering opportunities for growth.
Fraleigh also said that the company's North American Foodservice business is succeeding in a challenging market. The business has the No. 1 position in the foodservice frozen bakery and liquid coffee categories.