Sara Lee, the US food group, today (17 July) blamed a drop in consumption in Spain for its decision to sell three bakeries in the country.
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Spanish food maker Grupo Siro has struck a deal to buy Sara Lee’s three facilities for an undisclosed sum.
The sale will leave Sara Lee with eight factories in Spain and the company said it would invest in innovation and pricing to compete in the market.
“The current economic situation and drop in consumption has forced us to adapt our production capacity to the current needs of the market so that we can continue to be competitive,” a Sara Lee spokesman told just-food.
In May, when Sara Lee issued its third-quarter results, the company warned that Spanish consumers were trading down to private-label breads amid a “very challenging” economy.
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By GlobalDataThe Sara Lee spokesman hinted that the group could invest in price to compete with own-label manufacturers.
“With this cost savings, Sara Lee International Bakery will be able to further invest in innovation, quality and pricing architecture,” he said.
