The future of Sara Lee’s Australian frozen desserts business is hanging in the balance. In its fourth quarter global report, just published, the consumer goods company states that the Australian arm of the business is “under strategic review”. At the same time, Sara Lee announced it is divesting its Spanish bakery and French refrigerated dough businesses. Sara Lee is one of the largest processors of fresh produce in Australia, consuming large quantities of butter, eggs, cream and cheese.... ...Read more »

Sara Lee has entered an agreement to sell its North American refrigerated dough business to fellow US food group Ralcorp Holdings. The two companies said today (9 August) that Ralcorp would acquire the business for US$545m. It manufactures a range of private-label products including biscuits, crescent rolls, pizza and pie crusts and toaster pastries, which are sold to food and mass retailers. Sara Lee announced in May this year that it was evaluating strategic options for the business, which... ...Read more »

Coffee made in espresso makers, above all that made from capsules, contains more furan — a toxic, carcinogenic compound — than that made in traditional drip coffee makers, although the levels are still within safe health limits. “Preparing a coffee in a drip coffee maker is not the same as making one in an espresso machine or from capsules, because these give rise to differing levels of furan,” Javier Santos, a professor at the Department of Analytical Chemistry at the University... ...Read more »

Sara Lee yesterday (8 February) posted a slump in underlying quarterly profits as rising commodity costs hit earnings.The US food group, which plans to split in two next year, booked net income from continuing operations of US$107m for its fiscal second quarter, which ended on 1 January. In the previous year’s second quarter, the figure stood at $298m. On a reported basis, Sara Lee’s net income was $882m, up from $376m a year ago. However, this year’s figure included a gain on the... ...Read more »

Marcel Smits, the chief executive of Sara Lee, defended the US food group’s plans to split the business in two, amid questions over whether the move will benefit shareholders. Smits, who also admitted today that Sara Lee had decided against pursuing “unsolicited indications of interest” from unnamed parties to buy the company, said the decision to divide the group was “in the best interests of the business and shareholders”. The Dutchman was addressing Wall Street analysts... ...Read more »

Sara Lee, the US food group, on Friday (28 January) confirmed plans to split itself in two.The company’s senior management has drawn up proposals, backed by its board, to create two publicly-traded businesses. One company, which will retain the Sara Lee name, will be spun off and focus on the group’s North American grocery retail and foodservice arms. The company, which would have had sales of US$4.1bn in Sara Lee’s last fiscal year, will sell brands including Jimmy Dean meats and... ...Read more »

Unilever has named the head of its operations in south-east Asia and Australasia as president of its business in western Europe.Jan Zijderveld, Unilever’s executive vice president for south-east Asia and Australasia, replaces Doug Baillie in western Europe. Baillie has been named as Unilever’s chief HR officer, following the recent departure of Sandy Ogg. “Jan will bring considerable experience of both Asian and European markets to his new role, building on the competitive position... ...Read more »

Sara Lee Corp has announced a new five-year initiative aiming to triple its purchases of sustainable coffee, expand partner programs and support the market for sustainable tea. The company, currently divesting itself of many of its product lines to focus on its coffee business, is speculated to be considering splitting its coffee and processed meats businesses. “Sara Lee’s long-term goal is to use only certified coffee and tea in all products worldwide, and this new aggressive five-year plan... ...Read more »

The lockout of workers at the Swift meatworks in Brooklyn, Victoria, has entered its second month, after NUW members again voted to reject the company’s 2% annual pay offer. One hundred and forty cold storage workers at Swift Australia, Brooklyn had agreed to taking industrial action on December 3rd last year, following a wage offer they described as ‘well below the cost of living.’ “This pay offer will send workers and their families backwards at a time when workers are facing... ...Read more »

US food group Sara Lee is reportedly considering splitting its processed meats and coffee operations into two companies.According to reports in the US, Sara Lee is weighing up whether to break up the business following the stalling of sale talks with Brazilian meat giant JBS before Christmas. In the week before Christmas, it was reported that Sara Lee had rejected a takeover bid from JBS due to a disagreement over price. The Financial Times reported yesterday that there has been no definitive end... ...Read more »