Sara Lee's Strategy to Stay No. 1

'Guess it's true that, "Nobody doesn't like Sara Lee!"

Apparently, the North American Foodservice division of Sara Lee holds the No. 1 spot in the frozen bakery and liquid coffee categories in the foodservice industry and Sara Lee plans on keeping it that way.

According to a recent update, Sara Lee Corporation intends to zero in on international beverage activities and on sales in North America. Sound familiar (...recall Pepsi Co. and Dr Pepper Snapple Group)?

Developing markets in India, Russia and Brazil are also attractive prospects for the brand (think sugar sales and consumption).

In addition, Hillshire Farm (who doesn't love Lit'l Smokies?), Jimmy Dean (the No. 1 breakfast sausage in the US) and Ball Park (the No. 1 hotdog in the US), subsidiaries of Sara Lee, are also presenting opportunities for growth.

The company has also embarked on a business plan for cost-savings, called "Project Accelerate," which aims to furnish greater than $250 million a year by 2011.

Changes will likely be made in the following areas to move with the times and consequently, mimic the times:

• SG&A reduction (Selling, General and Administrative Expenses)
• supply chain optimization (process of getting product to consumer)
• LEAN initiatives (to improve manufacturing efficiency)
• business process outsourcing (need we say more)

Seems like the No. 1 will be "cutting the fat," and they don't mean out of their beloved cheesecakes.

Is it possible that these changes may point to more outsourcing of manufacturing to Asia, accompanied by the loss of more American jobs?

Nevertheless, Branda C. Barnes, CEO of Sara Lee, feels that, "these strategies will deliver shareholder value."

Barnes further supports the company's position by highlighting Sara Lee's gain in net sales and operating income as it grows in the current economy, clearly good news for food distributors nationwide.

With such up-to-the-minute business strategies, Sara Lee is positioning themselves to deal with the many challenges--and opportunities--in the food industry, including fluctuations in pricing and the availability of raw materials and food ingredients.

And, with such a diverse brand portfolio and a presence in about 200 countries worldwide, it's no wonder Sara Lee continues to grow.