Sara Lee, the US food group, plans to use the proceeds from the sale of its personal care business to expand its North American retail and international beverage divisions.

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Earlier today (25 September), the Hillshire Farm meats maker said it had agreed to sell its global body care and European detergents businesses to consumer goods giant Unilever for US$1.28bn.


The deal brings an end to months of searching for a buyer for the businesses, which include the Sanex and Radox brands. Sara Lee said the sale would allow the company to focus on its “core” food and beverage divisions.


A spokesman for Sara Lee told just-food that the company would look to invest in two main parts of the business – North American retail and international tea and coffee. Sara Lee owns coffee brand Douwe Egberts.


The spokesman said the divisions were more of a priority for Sara Lee than its international bakery business, which has endured a challenging 12 months.

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Revenue from the division inched up by 1% in Sara Lee’s last fiscal year and, in July, the company agreed to sell three bakeries in Spain amid fierce local competition from private label.


The spokesman said, however, that Sara Lee had “plans” in place to invest in its international bakery businesses.


Earlier this month, while addressing analysts in the US, Sara Lee chairman and CEO Brenda Barnes said the company had marked its North American retail and international beverage businesses as “high priority” for capital investment. International bakery, however, was marked as “low priority”.