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Sara Lee Corporation

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"Sara Lee" redirects here. For other uses, see Sara Lee (disambiguation).

Sara Lee Corporation
Company typePrivate
NYSE: SLE
IndustryConsumer goods
Founded1939
Defunct2012
FateSplit
Successors
HeadquartersDowners Grove, Illinois, U.S.
Key people
Jan Bennink (chairman)
Marcel Smits (CEO)
ProductsFood, beverage, and household and body care products

The Sara Lee Corporation was an American consumer-goods company based in Downers Grove, Illinois.[1][2] The Sara Lee name was used of a number of frozen and packaged foods, often known for the long-running slogan "Everybody doesn't like something, but nobody doesn't like Sara Lee".

In 2005, Sara Lee Corporation had operations in more than 40 countries; sold food, beverage, and household products in over 180 countries; and had some 137,000 employees worldwide.[3] On July 4, 2012, Sara Lee Corporation was split into two companies: one for North American operations renamed Hillshire Brands, which continued to use the Sara Lee name on bakery and certain deli products, and the other for international beverage and bakery businesses that was named D.E Master Blenders 1753.[4] Hillshire Brands was acquired by Tyson Foods in 2014.

In 2018, Tyson Foods sold the Sara Lee brand and product line to private investment firm Kohlberg & Company.[5]

History

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In 1935, Charles Lubin and his brother-in-law, Arthur Gordon, bought a small chain of Chicago neighborhood bakeries called Community Bake Shops. Working together, the businessmen expanded their original three stores into a chain of seven bakeries.[6] Lubin wanted to expand the business. He named a cream cheesecake after his eight-year-old daughter, Sara Lee Lubin, and changed the name of the business to Kitchens of Sara Lee.[6]

In 1956, the Consolidated Foods Corporation bought Kitchens of Sara Lee, and it became one of the company's best-known brand names. In 1985, the name Sara Lee Corporation was adopted for the corporation as a whole. While the company traced its lineage to 1939, when Nathan Cummings acquired C. D. Kenny Company, a wholesale distributor of sugar, coffee, and tea in Baltimore, Consolidated Foods Corporation was actually the descendant of a Chicago grocery store called Sprague, Warner & Company. This enterprise, which started on State Street in Chicago, was founded during the Civil War by Albert A. Sprague and Ezra J. Warner. By 1909, Sprague, Warner & Company was one of the leading wholesale grocery companies in the United States, famous for house brands such as Richelieu, Ferndell, and Batavia. In 1942, this company was acquired by the Canadian-born Cummings. The new Chicago-based company, at first called Sprague Warner–Kenny Corp., ranked as the largest grocery wholesaler in the United States. Annual sales grew from about $20 million in 1942 to $120 million by 1946. After changing its name in 1945 to Consolidated Grocers, Cummings's company became the Consolidated Foods Corporation in 1953.[7]

In 1986, Sara Lee bought the manufacturing and mail order operations of Wolferman's, a maker of English muffins, that dated back to 1888.[8]

In February 1988, Sara Lee agreed to the purchase of the 84-year-old Adams-Millis Corporation of High Point, North Carolina, the largest private label sock and stocking manufacturer in the United States, with 3000 employees and 1987 sales of nearly $200 million.[9]

On June 25, 2001, Sara Lee Corp pleaded guilty to a misdemeanor and agreed to pay $4.4 million for selling tainted meat that was blamed for at least 15 deaths and six miscarriages in 1998; the agreement stressed that Sara Lee's Bil Mar Foods division did not knowingly distribute the tainted meat.[10] On August 7, 2001, Sara Lee Corp cleared the last remaining regulatory hurdle in its purchase of Earthgrains Co, receiving approval from the European Commission (S).[11]

Brenda C. Barnes joined Sara Lee Corporation in July 2004 as the president and chief operating officer. Then in February 2005, Barnes was named president and chief executive officer, and the corporation announced it would move its headquarters from Cincinnati, Ohio, to Downers Grove, Illinois, which housed the company's North American operating businesses and the majority of Sara Lee's corporate staff.[citation needed]

Also in February 2005, the company began executing a multi-year plan to transform Sara Lee into a company focused on its food, beverage, and household and body care businesses around the world. To support that focus, Sara Lee announced plans to dispose of approximately 40 percent of the company's revenues, including its apparel, European packaged meats, US retail coffee and direct selling businesses. On December 22, 2005, Sara Lee Corporation was to delist from Euronext Amsterdam and Euronext Paris stock exchanges, as well as the Swiss Exchange. The company said it was taking the voluntary step due to low trading volumes on those exchanges.[12]

2005 also saw the debut of Sara Lee Soft & Smooth made with whole grain white bread. In October, Barnes succeeded C. Steven McMillan as chairman. The year ended with the sale of the direct selling business to Tupperware.[citation needed]

In 2006, Sara Lee announced a new company wide campaign: "the joy of eating". The campaign was part of a restructuring at Sara Lee.[citation needed]

2006 featured the divestiture of Sara Lee's European meats and European branded apparel businesses. In addition, the corporation spun off to its shareholders the branded apparel, Americas/Asia, business, into a separate, publicly traded company called Hanesbrands Inc.[citation needed]

Including the spin-off, Sara Lee raised more than $3.7 billion in proceeds as part of the company's transformation plan. In addition to the monetary benefits, the company became tightly focused on its core businesses: food, beverage, and household and body care. In 2008, Sara Lee sold off its Direct Store Delivery foodservice coffee business to Farmer Brothers for a reported $45 million.[13]

By 2009, Sara Lee was pursuing the sale of its household and body care business in their continuing effort to focus on core business.[14] In April, Sara Lee launched a state-of-the-art research and development center named The Kitchens of Sara Lee, a 120,000-square-foot (11,000 m2) campus at the company's headquarters in Downers Grove.[15]

On September 25, 2009, Sara Lee announced it accepted a binding offer by Unilever for €1.275 billion to sell its global body care and European detergents business.[16] The transaction was approved by EU regulators in November of the following year.[17]

On November 9, 2010, Sara Lee said that by selling its North American Fresh Bakery unit to Grupo Bimbo, it could grow in other areas. The $959 million deal gave Sara Lee the right to continue using the Sara Lee name on frozen desserts and meat products. Grupo Bimbo was to use the Sara Lee name for fresh-baked products around the world except for Western Europe, Australia and New Zealand. The deal also gave Grupo Bimbo 41 baking plants, and the regional brands Grandma Sycamore's, Heiner's and Rainbo.[18]

On January 28, 2011, Sara Lee announced the company would be split into two units. The company said its North American operations (including Jimmy Dean, Ball Park and Hillshire Farm) would take the Hillshire Brands corporate name, while the international beverage and bakery businesses (including Douwe Egberts, Senseo, Pickwick, Maison du Café, L'OR, Café Pilão, and Marcilla) would constitute a separate unit named D.E Master Blenders 1753. Some analysts claimed splitting the business into two units would make a takeover more likely. Stockholders would have equal shares in both companies. In the same month, Sara Lee received noted media attention regarding their strategy to "refocus on the core" to revamp the company. In a Forbes magazine column, Adam Hartung stated Sara Lee could not "cost-cut, refocus or re-align a business to success with no new products and no growth plan".[19] Also, Marcel Smits, interim CEO since Barnes suffered a stroke, became the new CEO, and Jan Bennink director and chairman.[4] The split was completed on July 4, 2012.

The successor company, Hillshire Brands, re-located its headquarters from Downers Grove to Chicago in 2012.[20] In 2014, Hillshire, along with the Sara Lee operations, was acquired by Tyson Foods.[21]

On June 1, 2018, Tyson announced that it would sell the Sara Lee, Van's, Chef Pierre and Bistro Collection brands to Kohlberg & Company.[22] The sale was completed on August 1, forming Sara Lee Frozen Bakery, which will be based in Oakbrook Terrace, Illinois.[23]

Company

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Brands

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Food[24]
  • Ball Park Franks: hot dogs
  • Bryan: meats
  • Bryan Foods: meats
  • CroustiPâte: bakery, European market
  • Deli d'Italia: meats
  • Deli Perfect: meats
  • Emeril: meats
  • Galileo: salame, meats (east coast)
  • Gallo Salame: meats (San Francisco, west coast)
  • Green Hill: sausage
  • Hillshire Farm: meats
  • Jimmy Dean: pork sausages and meat products
  • Kahn's: meats
  • King Cotton: meats
  • Mr. Turkey
  • Ortiz: bakery
  • R.B. Rice: meats
  • Rainbo: bakery
  • Rudy's Farm: pork sausage and breakfast sandwiches
  • Sara Lee: bakery, condiments, deli cheese, deli meats and frozen sweets
  • State Fair: corn dogs
  • West Virginia Brand: meats
Beverages[24]
  • Butter-Nut Cappuccino:
  • Bravo:
  • Caboclo
  • Café Continental
  • Café Damasco
  • Café do Ponto
  • Café Pilão
  • Cafitesse
  • Chat Noir
  • Cain's Coffee
  • Douwe Egberts: coffee, tea
  • Harris
  • Hornimans
  • Jacqmotte
  • Java Coast
  • Kanis & Gunnink
  • Kayo
  • Laurentis
  • Maison du Café
  • Marcilla
  • Maryland Club
  • Merrild
  • Moccona
  • Natreen
  • Natrena
  • Paradise
  • Piazza d'Oro
  • Pickwick: tea
  • Prima
  • Seleto
  • Senseo: coffee machine and coffee pods
  • Soley
  • Steamers
  • Suntipt
  • Van Nelle

Divested

[edit]

Sara Lee Corporation announced in 2006 that it had completed the sale of its branded apparel business in Europe to an affiliate of Sun Capital Partners. Such brands included Dim, Playtex, Wonderbra, Lovable, Abanderado, Nur Die, Unno and Bellinda.[citation needed]

Sara Lee Corporation announced on Sept 28, 2009, that it had received a binding offer for its Global Body Care and European Detergents to Unilever for €1.275 billion (equivalent to €1.71 billion in 2023).[25] On June 1, 2010, Sara Lee announced it had completed the sale of its 51 percent stake in its Godrej Sara Lee joint venture to Godrej Consumer Products Ltd. for a total consideration of €185 million (equivalent to €249 million in 2023).[26] On June 15, 2010, the company announced that it had received a binding offer of $153.5 million (equivalent to $209 million in 2023)[27] for its remaining insecticides business.[28] The offer is dependent on European Union antitrust approval; the decision is due May 2, 2011.[28] On July 5, 2010, Sara Lee completed the sale of its Ambi Pur air care business to Procter & Gamble for €320 million (equivalent to €412 million in 2023).[29] On April 4, 2011, Sara Lee completed the sale of its Kiwi shoe care business to SC Johnson for €245 million (equivalent to €315 million in 2023).[30][31] In 2010, Sara Lee completed the sale of White King and Janola brands to Symex for €38 million (equivalent to €50.3 million in 2023).[32] In addition, Sara Lee announced the pending sale of its non-Indian insecticides business to SC Johnson for €153.5 million.[citation needed]

In 2010, Sara Lee divested its North American fresh bakery business to Grupo Bimbo.[33]

In 2012, Hillshire Brands sold its Australian bakery operations to McCain Foods.[34]

Discontinued

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On November 19, 2008, Sara Lee Corporation, which had acquired "the No. 2 kosher hot dog brand" in 1993,[35] announced that it would close its kosher hot dog and meat processing facility in Chicago, on or before January 30, 2009. Sara Lee decided to exit the kosher meat business and discontinue processing and distributing products made under all of its kosher meat brands, including: Best's Kosher, Sinai Kosher, Shofar and Wilno.[36]

As of early 2019, certain Sara Lee bread and other baked goods products, which had dropped some kosher certifications in 2017,[37] restored them.[38]

Political issues

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Throughout 2012, Sara Lee contributed $343,600 (equivalent to $450,869 in 2023)[27] to a $46 million political campaign (equivalent to $60.4 million in 2023)[27] known as "The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and Food Producers".[39] This organization was set up to oppose a California citizen's initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients.[40]

The Sara Lee Foundation

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The Sara Lee Foundation[41] was founded in 1981 to formalize Sara Lee's dedication to community services.

See also

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References

[edit]
  1. ^ "Investor Contacts". Sara Lee Corporation. Archived from the original on February 2, 2011. Retrieved January 31, 2011. Sara Lee Corporation Investor Relations Department 3500 Lacey Road Downers Grove, Illinois 60515-5424
  2. ^ "About Sara Lee". Sara Lee Corporation. Retrieved January 31, 2011. Based in Downers Grove, Ill.,[...]
  3. ^ Sara Lee 2005 Annual Report (Report). Sara Lee Corporation. Archived from the original on July 9, 2007.
  4. ^ a b "Sara Lee to split into two businesses". News & Record. Associated Press. January 28, 2011. Archived from the original on November 7, 2011. Retrieved January 28, 2011.
  5. ^ https://www.kohlberg.com/investments/
  6. ^ a b "Charles W. Lubin, 84, Sara Lee's Founder". The New York Times. Associated Press. July 17, 1988. ISSN 0362-4331. Archived from the original on October 23, 2022. Retrieved February 10, 2023.
  7. ^ "Consolidated Foods Corp". Electronic Encyclopedia of Chicago. Chicago History Museum. Archived from the original on October 31, 2014. Retrieved May 1, 2014.
  8. ^ McEntee, Helene (July 17, 1986). "Muffin-maker Wolferman sells two units to Sara Lee". Chicago Sun-Times. Archived from the original on October 24, 2012. Retrieved December 16, 2010.
  9. ^ "This day in history". News and Record. February 9, 2016. Archived from the original on March 7, 2020. Retrieved November 8, 2016.
  10. ^ Barboza, David (June 23, 2001). "Sara Lee Corp. Pleads Guilty In Meat Case". The New York Times. Archived from the original on October 14, 2016. Retrieved February 12, 2017.
  11. ^ "EC CLEARS SARA LEE'S PURCHASE". Archived from the original on August 5, 2020. Retrieved August 31, 2013.
  12. ^ "US: Sara Lee to delist on three stock markets". Just Food. December 22, 2005. Retrieved September 14, 2024.
  13. ^ "Farmer Bros. to Acquire Sara Lee's Direct-Store Delivery Coffee". Bloomberg. December 3, 2008. Archived from the original on October 31, 2014. Retrieved September 17, 2014.
  14. ^ Dorfman, Brad (April 17, 2009). "Sara Lee still evaluating possible unit sale". Reuters. Retrieved May 3, 2009.
  15. ^ "Sara Lee Corporation Opens the Kitchens of Sara Lee" (Press release). Sara Lee Corporation. April 17, 2009. Archived from the original on April 20, 2009. Retrieved May 3, 2009.
  16. ^ "SARA LEE RECEIVES BINDING OFFER OF €1.275 BILLION FROM UNILEVER FOR ITS GLOBAL BODY CARE BUSINESS" (Press release). Sara Lee Corporation. September 25, 2009. Archived from the original on September 28, 2009. Retrieved September 25, 2009.
  17. ^ "EU OKs Unilever's Sara Lee deal". Marketing Week. November 17, 2010. Archived from the original on March 7, 2020. Retrieved September 16, 2019.
  18. ^ "Sara Lee to sell North American bakery unit for $959 million". News & Record. Associated Press. November 9, 2010. Retrieved November 9, 2010.
  19. ^ Hartung, Adam. "Killing Me Softly- Leadership Failure at Sara Lee". Forbes Magazine. Archived from the original on November 13, 2012. Retrieved June 28, 2012.
  20. ^ "Hillshire Brands starting up in new space". Chicago Tribune. December 16, 2012. Archived from the original on September 14, 2024. Retrieved March 25, 2014.
  21. ^ McCarthy, Erin; Prior, Anna (August 28, 2014). "Tyson Completes Acquisition of Hillshire". The Wall Street Journal. Archived from the original on August 25, 2017. Retrieved September 6, 2017.
  22. ^ "Tyson to sell Sara Lee, three other non-protein brands". U.S. Retrieved June 18, 2018.
  23. ^ Zarling, Patti (August 1, 2018). "Sara Lee's new owner hopes to thaw sales through R&D". Food Dive. Archived from the original on September 26, 2018. Retrieved September 26, 2018.
  24. ^ a b Sara Lee Corporation (2011). "All Sara Lee Brands". Archived from the original on January 24, 2011. Retrieved January 24, 2011.
  25. ^ Eurostat, HICP - annual data (average index and rate of change); for Euro area (19 countries; 20 countries since 2023), retrieved 2 March 2024. DOI 10.2908/prc_hicp_aind
  26. ^ Eurostat, HICP - annual data (average index and rate of change); for Euro area (19 countries; 20 countries since 2023), retrieved 2 March 2024. DOI 10.2908/prc_hicp_aind
  27. ^ a b c Johnston, Louis; Williamson, Samuel H. (2023). "What Was the U.S. GDP Then?". MeasuringWorth. Retrieved November 30, 2023. United States Gross Domestic Product deflator figures follow the MeasuringWorth series.
  28. ^ a b Serdarevic, Masa (January 4, 2011). "Sara Lee offloads Kiwi polish unit for €245m". Financial Times. Archived from the original on January 30, 2011. Retrieved January 24, 2011.
  29. ^ Eurostat, HICP - annual data (average index and rate of change); for Euro area (19 countries; 20 countries since 2023), retrieved 2 March 2024. DOI 10.2908/prc_hicp_aind
  30. ^ Eurostat, HICP - annual data (average index and rate of change); for Euro area (19 countries; 20 countries since 2023), retrieved 2 March 2024. DOI 10.2908/prc_hicp_aind
  31. ^ "Sara Lee Completes Sale of Global Shoe Care Business to SC Johnson" (Press release). Sara Lee Corporate. December 7, 2010. Archived from the original on August 7, 2011. Retrieved May 11, 2012.
  32. ^ Eurostat, HICP - annual data (average index and rate of change); for Euro area (19 countries; 20 countries since 2023), retrieved 2 March 2024. DOI 10.2908/prc_hicp_aind
  33. ^ "Grupo Bimbo to Buy Sara Lee Unit for $959 Million". Bloomberg.com. Archived from the original on August 8, 2018. Retrieved August 7, 2018.
  34. ^ "McCain to buy Australian frozen bakery business". Foodbusinessnews.net. December 19, 2012. Retrieved August 21, 2013.
  35. ^ Hochman, David (April 4, 1993). "You Don't Have to Be Jewish to Love This Business". The New York Times. Archived from the original on January 13, 2020. Retrieved January 13, 2020.
  36. ^ "Sara Lee announces closure of kosher hot dog and meat processing facility in Chicago". SaraLee.com. Sara Lee Corp. November 19, 2008. Retrieved November 22, 2008.
  37. ^ "Report: Arnold's, Thomas's, Sara Lee ..." The Jewish Press. December 7, 2018. Archived from the original on September 14, 2024. Retrieved January 13, 2020.
  38. ^ "Back to Basics: Bimbo Bakeries USA Confirms Kosher Recertification". The Jewish Press. January 24, 2019. Archived from the original on September 14, 2024. Retrieved January 13, 2020.
  39. ^ "Who's Funding Prop 37, Labeling for Genetically Engineered Foods? | Propositions | Elections 2012". KCET. July 9, 2012. Archived from the original on November 26, 2012. Retrieved August 21, 2013.
  40. ^ "ANH calls for international boycott of Prop 37 NO campaign companies". Anh-europe.org. November 14, 2012. Archived from the original on August 10, 2013. Retrieved August 21, 2013.
  41. ^ Mirapaul, Mathew (November 12, 1998). "High-Tech Companies Slow to Support High-Tech Art". The New York Times. Archived from the original on January 13, 2020. Retrieved January 13, 2020.
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