Sara Lee, the US food and consumer goods giant says it has made supply chain savings of £121m ($194m) since the start of its 2009 financial year.
Project Accelerate is a company-wide cost savings and productivity initiative focused on outsourcing actions, supply chain efficiencies and organizational simplification.
“Ongoing cumulative benefits realised from the beginning of fiscal 2009 to date are $194m, of which approximately $50m are incremental in the first half of fiscal 2011,” it said in its second quarter review.
“At the end of fiscal 2011, Sara Lee expects cumulative ongoing benefits of $220-240m (£137-150m). By the end of fiscal 2012, the company expects annualized benefits in continuing operations of $300-350m (£187-219m),” the company said.
Sara Lee last month announced plans to divide the business into two separate, publicly traded companies from 2012.
Under the plan, Sara Lee’s North American retail and foodservice businesses (excluding the North American beverage business) would be spun off, tax-free, into a new public company that would retain the “Sara Lee” name. Its brands would include Sara Lee, Jimmy Dean, Ball Park, Hillshire Farm, Chef Pierre and State Fair.
The yet to be named other company would consist of Sara Lee’s international beverage and bakery businesses, as well as the North American beverage business. Its brands would include Douwe Egberts, Senseo, Pickwick, Maison du Café, L’OR, Café Pilão, Marcilla and Bimbo.
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