Downers Grove, IL
630.598.6000
www.saralee.com
Sales: $2.0 billion

Sales:
$2.0 billion for household and personal care products. Corporate sales: $12.8 billion. Net income: $364 million, for the year ended June 27, 2009

So long, Sara! Sara Lee may not be listed in The Top 50 for much longer. As reported last year, Sara Lee is in the process of selling its household and personal care business in order to concentrate on its food and beverage activities. Now the process is heating up.

On June 1, Sara Lee completed the sale of its 51% stake in its Godrej Sara Lee joint venture to Godrej Consumer Products Ltd. for $230 million. Godrej Sara Lee is the market leader in the Indian household insecticides category and has a strong presence in the air care, shoe care and male hair care markets.

On June 15, Sara Lee agreed to sell its insecticides business to S.C. Johnson for $187.6 million.

The company continues to anticipate closing the sale of its global body care and European detergents businesses to Unilever by the end of the calendar year, and closing the sale of its air care business to The Procter & Gamble Company shortly after the end of the fiscal year in July.

“This divestiture is an important step in Sara Lee’s strategy to focus on its core food and beverage businesses,” explained a company spokesperson. “We continue to receive strong interest in the remainder of the business, which includes shoe care, non-Indian insecticides and certain non-European cleaning brands.”

Last year, sales of household and body care products slipped 11.6% to $2.0 billion. Meanwhile, corporate sales fell 2.5% to $12.8 billion. For the nine months ended March 31, 2010, corporate sales fell 2.4% to $8 billion. Sales of international household and personal care products rose 7.9% to $1.6 billion.

Downers Grove, IL
630.598.6000
www.saralee.com
Sales: $2.3 billion

Sales: $2.3 billion for household and body care products. Corporate sales: $13.2 billion. Net loss: $79 million for the year ended June 30, 2008.

Sara Lee may be exiting the household and personal products industry. Back in March, rumors swirled that the company would sell the unit to focus solely on food. But at press time, Sara Lee hadn’t found a buyer, probably because its price tag is too high. Also, since its portfolio is so diverse, there may be multiple buyers.

As the economy slips, so too has the division’s sales. For the first nine months of fiscal 2009, sales declined 9.8% to $1.8 billion. Unit volume was off 2.4%. While the price tag and timing could be better, most analysts believe the move is the right one. Selling the unit will enable Sara Lee to focus on food—primarily processed meat, bread and coffee.

Last year, sales of household and personal care products rose more than 12%, but most of the increase was due to currency fluctuations. In fiscal 2008, 70% of the segment’s sales were generated in Western and Central Europe, 21% in the Asia Pacific region and 4% in the U.S. The remaining portion of the segment’s sales was generated primarily in Africa.

Corporate sales rose 10.3% last year.

Chicago, IL
312.726.2600
www.saralee.com
Sales: $2 billion

Sales:

$2 billion for household and personal care products. Corporate sales: $12.2 billion. Net income: $504 million for the year ended June 30, 2007.

Corporate sales rose 7.1%, but net income declined 9.4%. Sales of household and personal care products jumped 11%. Household and personal care unit volume increased 5.6%, driven by strong unit volumes for insecticides, body care and air care. Insecticide volumes grew due to strength in India and Europe.  Body care unit volume increases were driven by strong volumes across this core category, particularly for Sanex shower gels and deodorants and Duschdas and Radox bath and shower products.  In air care, unit volumes continued to increase behind the international rollouts of Ambi Pur 3Volution and Ambi Pur Puresse.

Chairman Brenda Barnes said the company has turned the corner in its restructuring program and is now functioning as an integrated operating company with significant growth potential, rather than a holding company. In addition, the company consolidated its North American operations in its Chicago headquarters. The move enables Sara Lee to leverage talent and resources. International business continues to be managed from The Netherlands.

For the nine months ended March 31, 2008, sales of household and body care products rose 13.1% to $1.7 billion. Unit volume was up 5.9%, primarily driven by strong unit volumes in air care and insecticides.  Air care unit volume was up driven by strength in electrical plug-in air fresheners. In a partnership with Dial/Henkel, Sara Lee’s innovative 3Volution air freshener was successfully launched in the U.S. under the Renuzit TriScents brand name in the third quarter. Unit volumes for insecticides grew primarily as a result of strong volumes in France and India.