US food, apparel and consumer goods firm Sara Lee has named a new chief executive officer and said it plans to dispose of around 40% of its revenues, including its apparel, European packaged meats and direct selling businesses.
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The move forms part of its transformation plan, which the company said consists of organising business operations around consumers, customers and geographic markets; focusing the portfolio; and increasing operational efficiency. The plan is aimed at improving the company’s performance and better positioning it for long-term growth.
Brenda Barnes has been named CEO of the company, effective immediately, replacing Steve McMillan, who is to remain as chairman until October 2005.
“Today, Sara Lee is embarking on an aggressive, strategic plan that will transform the entire enterprise into a tightly focused food, beverage and household products company,” said Barnes.
The company’s new organisation structure will consist of three lines of business: North American retail, including the bakery, packaged meats and Senseo coffee retail businesses in North America; North American foodservice, including the bakery, coffee and meats foodservice businesses in North America; and Sara Lee International, which will include the bakery and beverage businesses outside of North America, the global household products business, as well as the European packaged meats business, until it is divested.
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By GlobalDataSara Lee’s US$1.1bn European packaged meats business has brands such as Aoste and Imperial.
In addition, Sara Lee is planning to locate its North American businesses with its corporate staff at a single site to be determined in the Chicago area. Sara Lee International will be headquartered in Utrecht, The Netherlands.
