Sara Lee unloads foodservice coffee and tea business
Food and beverage giant Sara Lee Corp. sold a large part of its foodservice coffee and tea operations to J.M. Smucker Co. for $350 million. The acquisition will put J.M.Smucker, owner of Folger's and Dunkin' Donuts coffee brands, at the forefront of the US coffee market. The deal will also see both companies enter a long-term partnership to develop liquid coffee drinks and Sara Lee is set to pocket $50 million and growth-related royalties over the next 10 years. Sara Lee plans to focus on core food and beverage brands, but expects to wind down the rest of its North American beverage business. It looks to split into two companies in the first half of next year in order to separate North American and international brands.