Sara Lee Corp. plans to sell as many as 60 of its household products brands to fund more aggressive marketing for its bigger brands.
Brands likely to get more marketing funds are the Ambi Pur air care line; Radox bath and shower products in Europe; and Sanex personal care, which Sara Lee recently relaunched in Europe and has extended with its Sanex for Men line. Sara Lee didn’t say which brands might go on the block.
Sara Lee’s household product sales hit $2.4 billion worldwide, up 12.4% for fiscal 2004, ended July 3. Volume sales were up 1%, Sara Lee reported. The segment is Sara Lee’s most global business, with direct-to-home sales in many non-U.S. markets
The Chicago-based company announced the “strategic review” of its household brands portfolio during an Oct. 5 meeting with analysts in which Sara Lee discussed its five business units, including branded apparel, meats, bakery and beverages.
The fresh-bakery business continues to shift away from private label to national brands. Worldwide bakery sales rose 4.2% to $3.4 billion for the year. Volume fell 1% despite a 14% increase in ad spending for flagship Sara Lee brand.
Worldwide meat sales were $4.2 billion, up 11.3%, driven partly by a 17% boost in ad spending behind key brands Sara Lee, Ball Park, Hillshire Farms and Jimmy Dean.
Highlights in the apparel business included the recent relaunch and expansion of Hanes. Sara Lee will pursue trade partnerships similar to its deal with Target Stores for exclusive distribution of Sara Lee’s new C9 by Champion brand. Worldwide apparel sales were flat at $6.5 billion for fiscal 2004. Volume sales for knit products were up 4% in the U.S.; all other volume sales were down.
Sara Lee consolidated operations two years ago, funneling marketing funds to brands with the highest growth potential. The company’s goal now is to rank “among the top tier of consumer products companies in the eyes of our investors, our customers and our competitors,” said President-CEO Brenda Barnes in a statement. Sara Lee’s total worldwide sales are $19.6 billion, up 7% for fiscal 2004.
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