Sara Lee Has Meat, Tea, Coffee On Menu
The Chicago-based Sara Lee Sara Lee, to diversify its business portfolio in India, is planning to enter the packaged meat, coffee, tea and air freshner segments.
Sara Lee, worldwide, has three focused businesses -- food and beverages, intimates and underwear, and household products. While currently its intimates and household products have presents in India, it has elaborate plans for the food and beverages market in the country.
Earlier, Sara Lee had a small presence in the bakery segment when it acquired Nutrine's biscuit business.
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Sara Lee is the largest player in the packaged meat category in the world with 82 per cent of its revenues coming in from this segment in fiscal 2001. The company has products such as hot dogs, sausages and breakfast sandwiches.
Sara Lee's well known brands include Hill Shire farm meats, Aoste, Ball Park, Jimmy dean and Kahns packaged meats. Its coffee and tea brands include Douwe Egberts and Pickwick.
Sources close to Sara Lee said, "The company is looking at entering new categories to spur growth in the Indian market."
Sara Lee is looking at various options for the proposed entry in the Indian market. It could either look at growing inorganically by acquiring existing brands and companies in India, or may forge a joint venture or could also make use of existing joint venture companies.
It has also not ruled out the possibility of making use of its 100 per cent subsidiary, the erstwhile TTK Sara Lee. The TTK group continues to be Sara Lee's distributor for Brylcream and Kiwi shoe polish.
Sources claim that the company is yet to finalise the structure of its plans. Sara Lee will soon be launching its international brand Ambi Pur brand of air freshner through its joint venture company Godrej Sara Lee.
Ravi Venkateswar, director and chief financial officer, Godrej Sara Lee, said, "We have undertaken a research on the market potential of the air freshner market in India and the initial response has been encouraging."
In the branded intimate garments market, the company is looking at expanding its product portfolio. Sara Lee's brands include Dim, Hanes, Champion, Lovable, Playtex, Wonderbra and Just My Size. The multinational has entered into arrangements with different companies for establishing its presence in India.
Jacob John, director, Noah Trading Corporation, said, "Sara Lee's intimate garments cater to the premium segment of the market. We have recently launched Dim and will be introducing Hanes shortly."
Noah Trading Corporation is the distributor appointed by Lal Trading Corporation, the franchisee holder of Sara Lee 's brands such as Dim, Champion and Hanes for India and Middle East.
Prashant S Mulki, regional sales manager, Lovable Lingerie, part of the Maxwell group which markets the VIP brand, said, "We own the brand rights of Lovable Lingerie for India, Sri Lanka, Bangladesh, Nepal and Middle East. The company acquired the brand rights from Lovable World Trading of the US for an undisclosed sum."